Private Pooled Funds. Greater Complexity. Careful Evaluation.
Alternative Investment Funds (AIFs) are privately pooled investment vehicles that collect money from investors and invest it as per a defined investment policy. They are governed by the applicable SEBI framework.
AIF Categories
- Category I — Funds investing in areas considered socially or economically desirable, such as start-ups, small businesses, infrastructure and social ventures.
- Category II — Funds such as private equity and private debt funds that generally do not use leverage other than for day-to-day operational needs.
- Category III — Funds that may use diverse or complex strategies, including leverage, and may trade for shorter-term returns.
Key Considerations
- Higher minimum commitment and eligibility criteria
- Longer lock-in periods and limited liquidity
- Fees, profit sharing and other charges as per the placement memorandum
- Potential complexity and the possibility of significant loss
How VALUE ADDITION Helps
We help you understand how AIFs are structured, what the placement memorandum says about fees, risks and exit, and connect you with relevant options where you are eligible.
Important note
All investments carry risk, including the possible loss of capital, and returns are not guaranteed. Availability depends on eligibility and applicable regulations. This page is general educational information, not investment advice or a recommendation. We do not provide SEBI registered investment advisory or portfolio management services.