What is an Alternative Investment Fund (AIF)?

AIFs are privately pooled investment vehicles that collect funds from investors and invest in assets beyond traditional stocks and bonds—such as private equity, hedge funds, venture capital, and structured products.

What are the different categories of AIFs?

Category I: Invests in start-ups, SMEs, social ventures, etc. Category II: Includes private equity, debt funds, and real estate funds. Category III: Employs complex strategies like hedge funds or trading in derivatives.

Who can invest in AIFs?

Only high-net-worth individuals (HNIs), institutions, or qualified investors can invest in AIFs, usually with a minimum commitment of ₹1 crore (as per SEBI guidelines).

What is the minimum investment required in an AIF?

As per SEBI regulations, the minimum investment is ₹1 crore. For employees or directors of the fund or manager, it is ₹25 lakhs.

How are AIFs different from mutual funds?

AIFs have more flexible investment strategies, less liquidity, higher minimum investment requirements, and cater to sophisticated investors. Mutual funds are more regulated, liquid, and retail-friendly.

What are the risks associated with AIFs?

AIFs can carry higher risks due to illiquid assets, complex strategies, and less regulatory oversight. Market, credit, and strategy-specific risks should be considered.

What is the typical lock-in period for AIFs?

AIFs usually have a lock-in period ranging from 3 to 7 years, depending on the strategy and structure of the fund.

How are returns from AIFs taxed?

Taxation varies by AIF category and the nature of the income (capital gains, interest, dividends). For Category I & II, income is passed through to investors. Category III AIFs are taxed at the fund level.

AIF Updates

RBI has proposed a 10% cap on RE contribution to AIFs, stricter provisioning rules, and is inviting stakeholder feedback by 8 June..AIFs industry has urged the markets regulator to facilitate an inter-regulatory platform, where all the stakeholders including regulators such as the RBI, IRDAI, could be on-boarded to help address operational hurdles in domestic capital formation.RBI has proposed a 10% cap on RE contribution to AIFs, stricter provisioning rules, and is inviting stakeholder feedback by 8 June..AIFs industry has urged the markets regulator to facilitate an inter-regulatory platform, where all the stakeholders including regulators such as the RBI, IRDAI, could be on-boarded to help address operational hurdles in domestic capital formation.

Empowering Your Wealth with AIF

Alternative Investment Funds (AIFs) are private investment instruments that go beyond traditional assets like stocks and bonds. They offer strategic exposure to areas such as private equity, venture capital, and structured credit.

Category I, II & III AIFs

Access to Unique Investment

Tailored Opportunities for HNIs & Smart Investors

Potential for Superior Risk-Adjusted Returns

AIF Commitments Raised - ₹ 13.49 lac crores

Fund Raised - ₹ 5.63 lac crores

Fund raised from domestic investors - 4.08 Lacs

Empowering Your Wealth with AIF

Category I, II & III AIFs

Access to Unique Investment

Tailored Opportunities for HNIs & Smart Investors

Potential for Superior Risk-Adjusted Returns

AIF Commitments Raised - ₹ 13.49 lac crores

Fund Raised - ₹ 5.63 lac crores

Fund raised from domestic investors - 4.08 Lacs

Stabilize Portfolio Risk

Access High-Growth Opportunities

Diversify Beyond Public Markets

Unlock Smarter Investing with AIF

Alternative Investment Funds (AIFs) open doors to exclusive opportunities beyond traditional markets. Designed for seasoned investors, they provide access to niche assets that can enhance portfolio performance and stability

Access High-Growth Opportunities

Diversify Beyond Public Markets

Stabilize Portfolio Risk

Built for Sophisticated Investors

Unlock Smarter Investing with AIF

Access High-Growth Opportunities

Diversify Beyond Public Markets

Stabilize Portfolio Risk

Built for Sophisticated Investors

AIF Focus List

Alchemy Capital Management Pvt. Ltd.

ALCHEMY LEADERS OF TOMORROW

CategoryCAT-III

Inception Date03/01/2018

Management Fees(%)N/A

Exit Load(%)NA

Emkay Investment Managers

Emkay Emerging Stars Fund - VII

CategoryCAT-III

Inception DateUndisclosed

Management Fees(%)N/A

Exit Load(%)3% for redemption within 24 months from date of allotment against final drawdown , 2% thereafter

Abakkus Asset Manager LLP

Flexi Edge Fund – 1

CategoryCAT - III

Inception Date07/08/2025

Management Fees(%)N/A

Exit Load(%)2% up to 12 months

ICICI Prudential AMC Ltd

Growth Leaders Fund –Series V

CategoryCAT-III

Inception Date27/01/2025

Management Fees(%)2.5

Exit Load(%)Exit Load 1st Year: 2%, 2nd year: 0%, 3rd Year: 0%

Nippon India Alternative Investment

Nippon India Equity Opportunities AIF Scheme - 11

CategoryCAT-III

Inception Date29/07/2025

Management Fees(%)2.5

Exit Load(%)<=12months from final drawdown- 2% of NAV

Sundaram Alternate Assets Ltd

Opportunties Series-Atlas

CategoryCAT-III

Inception Date18/05/2022

Management Fees(%)2.25

Exit Load(%)3% within 1st year | 2% within 2nd years | 1% within 3rd Years

Sundaram Alternate Assets Ltd

Real Estate Credit Fund V

CategoryDebt

Inception Date15/09/2025

Management Fees(%)2

Exit Load(%)NA

What Else Can AIF do?

Capital Preservation & Inflation Hedge

AIFs help safeguard wealth by investing in assets that retain value over time and provide a buffer against inflation.

Long-Term Wealth Planning

Structured for sophisticated investors, AIFs align well with long-term financial goals and may offer tax efficiency.

Strategic Diversification

They offer exposure to unique sectors like renewable energy, distressed assets, and global markets, enhancing portfolio balance.

Economic Contribution

Investments in infrastructure, SMEs, and startups fuel innovation and contribute to national economic growth.

Smart Investing Starts with Mutual Funds

Tailored portfolio solutions aligned with your financial goals, risk appetite, and investment preferences.

Secure Your Future with the Right Insurance Plan

Insurance provides a financial safety net, protecting your health, life, property, and travel for lasting peace of mind and stability.

Secure Your Wealth with Fixed Income

These investments offer steady returns and regular interest, ideal for conservative investors seeking capital safety and consistent income.

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Empowering Your Wealth with AIF

Empowering Your Wealth with AIF

Unlock Smarter Investing with AIF

Unlock Smarter Investing with AIF

AIF Focus List

What Else Can AIF do?

Capital Preservation & Inflation Hedge

Long-Term Wealth Planning

Strategic Diversification

Economic Contribution

Smart Investing Starts with Mutual Funds

Secure Your Future with the Right Insurance Plan

Secure Your Wealth with Fixed Income

Our Distributor Partners

Our Issuer Partners

Frequently Asked Questions

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