Alternate Investment Fund
Alterative Investment fund offer a chance for our investors to go off the beaten track and invest in securities that are unavailable to the common investor. Real estate, venture capital, hedge funds, commodities, pre-IPO placements and derivative contracts can bolster the portfolio, mitigate risk and spur returns. While AIFs can also invest in listed equity shares, the structure allows for investments in securities which are unavailable under the traditional mutual fund investment platform.
We forgo fixed management fees in favour of performance-based compensation for some of our funds. An external Advisory Board supports the investment team with insights, experience and governance best practices. Our unique corporate structure ensures managers and employees have a stake in the business through long-term wealth creation for our investors. Our investor-first approach places trust before profit.
Types of AIF
Alterative Investment fund are categorized into the following three categories, based on their impact on the economy and the regulatory regime intended for them:
- Category I: These funds receive incentives from the government, SEBI or other regulating agencies. These include social venture funds, infrastructure funds, venture capital funds and SME funds
- Category II: These funds are allowed to invest anywhere in any combination, but cannot take debts, except for day-to-day operation purposes. These include private equity funds and debt funds
- Category III: Funds that make short-term investments and then sell, like hedge funds, come under this
Who invests in Alterative Investment Funds?
The Alterative Investment fund usually have a high limit of minimum investment to the tune of INR 1 Crore. It is basically directed at high net worth individuals. The total amount which is to be committed by investors in the investee company or trust by written contract or agreement should be a minimum of INR 20 Crores. The fund manager should also contribute 2.5% or at least INR 5 Crores in the initial capital investment. These funds ensure greater returns to domestic and global investors and promote India as a great investment definition-a vision the new government has taken on seriously.
- Min Investment : 1 Crore
- Kind of investor : Investor who like to invest with a long term wealth creation view
- Duration of investment : 5+ years