Alternative Investment Funds (AIFs) are pooled investment vehicles that invest in asset classes beyond traditional stocks, bonds, and cash. They provide access to a diverse range of investment strategies, including private equity, hedge funds, real estate, commodities, and infrastructure projects.
Types:
- Category I AIFs: Invest in startups, small and medium-sized enterprises (SMEs), and infrastructure projects. They are considered to be low-risk and low-return investments.
- Category II AIFs: Include hedge funds, private equity funds, and debt funds. These funds may employ leverage and derivatives to enhance returns and are suitable for sophisticated investors.
- Category III AIFs: Focus on trading strategies such as derivatives trading, commodity trading, and arbitrage. They are high-risk, high-return investment vehicles suitable for experienced investors.
Key Features:
- Diversification: Gain exposure to a wide range of asset classes beyond traditional investments, reducing the overall portfolio risk.
- Potential for Higher Returns: Access alternative investment strategies that may offer higher returns than traditional asset classes over a long term.
- Professional Management: Managed by experienced fund managers who specialize in alternative investments, ensuring prudent investment decisions and risk management.
- Regulatory Oversight: Regulated by the Securities and Exchange Board of India (SEBI) to protect investor interests and ensure transparency and accountability.
The AIF scheme introduced under Categories I & II will be structured as close-ended, with the duration being specified at the time of application and lasting for a minimum of three years. However, for Category III Alternative Investment Funds, they may be designed as either open-ended or close-ended. The minimum investment limit is Rs 1 crore for investors. For directors, employees, and fund managers, the minimum limit is Rs 25 lakh.
Experience the benefits of diversification and potential higher returns with FinQuant Investment's Alternative Investment Funds (AIFs). Whether you are a sophisticated investor seeking exposure to private equity, hedge funds, or real estate, our AIF offerings provide access to diverse investment opportunities. Take the next step towards building a well-rounded investment portfolio by exploring our range of AIFs today. Contact us to learn more and start investing with confidence.
