What is it?
AIFs are privately pooled investment vehicles registered with SEBI, investing in strategies such as private equity, venture capital, private credit and long-short. Minimum investment is generally ₹1 crore.
Key Features
- Category I, II and III structures
- Access to non-traditional strategies
- Defined fund tenure in many cases
Potential Benefits
- Diversification beyond listed markets
- Access to specialised managers
Risks
- Illiquidity and lock-in
- Complex structures
- Higher risk and fees
Who May Consider It?
- Sophisticated HNIs and family offices
- Investors with long horizons and high risk tolerance
Frequently asked questions
1. Are AIFs liquid?
Most AIFs have lock-ins or closed-ended structures; liquidity is limited.
Related in Invest
Disclaimer: Investments are subject to market risks. Information provided on this website is for educational and informational purposes and should not be considered investment advice or a recommendation to buy or sell any financial product. Past performance does not guarantee future results.