Alternative Investment Funds (AIF)
AIFs are privately pooled investment vehicles that collect funds from sophisticated investors (Indian or foreign) to invest in alternative asset classes, which are different from traditional investments like listed stocks and bonds.
Key Features
It's a pooled investment vehicle, meaning funds from multiple investors are combined.
AIFs primarily invest in non-traditional assets like Venture Capital, Private Equity, Hedge Funds, Real Estate, and distressed assets.
Suitable for sophisticated investors willing to accept higher risk for potentially higher returns.
The minimum investment required is generally ₹1 Crore.
Typically has lower liquidity with longer lock-in periods (often 3 to 5 years or more), reflecting the illiquid nature of the underlying assets.
