List of AIF in India - Alternative Investment Fund

Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

Categories of Alternative Investment Fund (AIFs)

AIF regulations provide for 3 broad categories of funds: - 

1.CATEGORY I

Funds that invest in Small and Medium Enterprises, Start-ups, and new business which have huge growth potential & are economically and socially viable, come under this category.

The government encourages entrepreneurs by investing in these projects as they are not only contributing to raise GDP but also help in creating job opportunities.

• Infrastructure Fund (IF)

The funds invest in the development of public assets like airports, roads, communication assets, rail infrastructure, etc.

• Venture Capital Fund (VFC)

Venture Capital refers to the funding offered by investors to start-up or small business with high growth potential. 

• Angel Fund (AF)

Angel fund is a type of Venture Capital Fund where managers fund pool money for several angel investors and initial stage business startups for their development.

• Social Venture Fund

The companies aimed at making profit & solving social as well as environmental problems. Even though it is a kind of complicated investment, still one can expect returns based on the business model.

2.CATEGORY II

This category includes AlFs such as debt funds or private equity funds for which no concession or specific investment are given by the government. 

• Private Equity Fund

A private equity fund is a collective investment scheme that is used for making investments in several debt and equity instruments. 

• Debt Fund

Debt fund invests in debt instruments of listed and unlisted companies. 

Companies that have low CIBIL Score usually have high debt securities with substantial risk.

Therefore, companies with huge growth potential and good corporate practices can be a good option for debt fund investors.

• Fund of Funds

It is a combination of several Alternative Investment Funds; the strategy of investing fund isto invest in the portfolio of others AIF instead of making its own portfolio.

3.CATEGORY III

The funds which are intended for a short-term return and for which no specific incentives are given by the government, come under this category.

• Hedge Fund

It is a type of actively managed fund that aims on substantial risk and high return investments.

• Private Investment in Public Equity Fund

It refers to the practice of private investors such as mutual fund or large institution but shares at a low market price.

List of Registered Alternative Investment Funds in India

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