Alternative Investment Funds is a relatively new concept in India, the regulations for which was described by SEBI in 2012. SEBI currently recognizes AIF as ' "private investment fund" which do not come under jurisdiction or purview of any regulatory body in India. These investments are recognized in the form of LLP (Limited Liability Partnership), corporate body, company or trust.
Since these funds are private in nature they are not available via IPO or public issue. The minimum investment amount for AIF is 20 Crores. AIF invites investors from home or abroad to invest in their privately pooled investment vehicle. Hedge Funds and Venture Capital are examples of AIFs.
The investment horizon ranges from 3 to 10 years.
There are three types of AIFs available for investors:-
1. Category I: It includes the Start-up funds and those funds which are beneficial for the economy. Some of the Category I funds are:
a. SME Funds
b. Social Venture funds
c. Infrastructure funds
d. Other AIFs specified under SEBI regulations
2. Category II: This category includes funds which resort to lending or borrowing for operational activities. Some of them are as follows:-
b. Private equity Funds
c. Funds for Distressed Assets
3. Category III: These fund practice strategies like Arbitrage, Margin Trading, Futures, and Derivative Trading. An example of Category III Fund is a Hedge Fund.
We are trusted wealth creation partners of our HNI and Ultra HNI clients. Our objective is a high capital appreciation of our client's valuable money. When you partner with us we only recommend the best Alternative Investments Fund which will fulfill your investment objective.
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