Category I
Venture capital, SME, social-impact and infrastructure funds.
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Alternative Investment Funds (AIF)
Privately pooled funds investing in private equity, private credit, real estate, venture capital and hedge strategies, for investors with ₹1 crore or more.
Overview
What is Alternative Investment Funds?
Alternative Investment Funds are SEBI-registered, privately pooled investment vehicles. They give access to asset classes and strategies that aren't available through mutual funds, such as unlisted companies, structured private credit and long-short hedge strategies.
AIFs are typically closed-ended, with capital drawn down over time as the manager deploys it, and returns distributed as investments are exited.
Options
Types & strategies
Category II
Private equity, private credit and real-estate funds. The largest category.
Category III
Hedge-fund style strategies, including long-short and listed-equity funds that use leverage.
How It Works
Ways to invest
Commitment
You commit capital, which is drawn down in tranches.
Distributions
Paid out as underlying investments are exited.
Reporting
Periodic NAV and portfolio reports from the manager.
Tenure
Fixed fund life, sometimes with extensions.
Our Role
How we help
- 01Assess suitability, liquidity needs and the ₹1 crore threshold
- 02Compare fund managers, strategy, track record and terms
- 03Walk you through the PPM, fees, drawdown schedule and commission
- 04Support documentation and track distributions
Key risks to understand
- Illiquidity: capital may be locked in for many years.
- Higher risk from unlisted, leveraged or concentrated exposures.
- Valuations are periodic and may be estimates.
- Read the Private Placement Memorandum (PPM) carefully.
Have questions about whether this suits you?
Book A Portfolio ConsultationMutual Fund investments are subject to market risks, read all scheme related documents carefully.
Pritesh Kakani (trading as Kakani Financial Services) is an AMFI-Registered Mutual Fund Distributor, ARN-373766, EUIN E717134. We are not a SEBI-Registered Investment Adviser. Any guidance provided is incidental to distribution. AIFs are not mutual fund products. They are illiquid, carry high risk and are suitable only for eligible investors. Past performance is not indicative of future returns, and returns are not guaranteed.