Alternative Investment Fund

Alternative Investment Fund (AIF)

  Any fund established or incorporated in India

  


Alternative Investment Fund Meaning

AIF means any fund established or incorporated in India. It is a privately pooled investment vehicle.

It collects funds from investors, whether Indian or foreign.

Categories

   Category I AIF

       1.  Venture capital fund- Invest in start-ups that have a high growth potential but lacking funds to  expand further.

       2.  Infrastructure fund-Invest in the development of public infrastructures like roads, rail, and airports  infrastructure

        3. Angel Fund-Invest in startups and they bring their experience in business management to guide the company

        4. Social Venture Fund-Invest in companies that intend to make a profit while solving social and environmental issues.

 Category II AIF

    AIFs which do not fall in categories 1 and III.

    It does not undertake leverage or borrowing other than day to day operational

    Real estate funds, private equity funds, funds for distressed assets are registered as category II AIFs

 Category III AIF

     AIFs which employ diverse or complex trading strategies.

    Various funds such as hedge funds, PIPE funds are registered as category III AIFs.

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