Alternative Investment Funds (AIF) India - Category 2 & 3
Access exclusive alternative investment opportunities in India through our curated portfolio of SEBI registered Category 2 & 3 Alternative Investment Funds. Featuring top-tier fund managers and diversified strategies across Private Equity, Real Estate, Hedge Funds, and Private Credit with combined AUM of ₹15,000+ Crores.
Why Invest in Alternative Investment Funds?
- ✓ Access to exclusive investment opportunities typically reserved for institutions
- ✓ Professional fund management by experienced alternative investment specialists
- ✓ Portfolio diversification beyond traditional equity and debt investments
- ✓ Higher return potential with target IRRs ranging from 15% to 28%
- ✓ SEBI regulated and compliant investment structures
- ✓ Suitable for HNI, UHNI, and institutional investors
Understanding Alternative Investment Funds (AIF) in India
Alternative Investment Funds (AIF) in India are privately pooled investment vehicles regulated by SEBI that collect funds from sophisticated investors for investing in accordance with a defined investment policy. AIFs are categorized into Category 1 (venture capital, infrastructure funds), Category 2 (private equity, real estate funds), and Category 3 (hedge funds, trading strategies).
Our comprehensive AIF platform provides access to 12+ SEBI registered alternative investment strategies across Category 2 and Category 3 funds, managed by experienced fund managers with proven track records. These funds offer exposure to asset classes like private equity, real estate, private credit, and sophisticated trading strategies not available through traditional investment products.
With a minimum investment requirement of ₹1 crore for most AIF strategies, these funds are designed for High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), family offices, and institutional investors seeking portfolio diversification and higher return potential.
Whether you're interested in real estate AIFs with 20%+ target IRRs, private equity funds focusing on growth capital, or hedge fund strategies employing sophisticated trading techniques, our curated selection represents the best alternative investment opportunities available in the Indian market.
AIF Category 2 vs Category 3 - Key Differences
Understanding the distinctions between different categories of Alternative Investment Funds
| Feature | Category 2 AIF | Category 3 AIF |
|---|---|---|
| Investment Strategy | Private Equity, Real Estate, Private Credit | Hedge Funds, Trading Strategies |
| Minimum Investment | ₹1 Crore | ₹1 Crore |
| Investment Horizon | 3-11 Years (Long Term) | 1-3 Years (Medium Term) |
| Liquidity | Limited (Closed-ended) | Better (Open/Close ended options) |
| Risk Profile | Moderate to High | High |
| Target Returns | 15-28% IRR | 15-25% CAGR |
Frequently Asked Questions about Alternative Investment Funds
What is the minimum investment for AIF in India?
The minimum investment for Alternative Investment Funds in India is ₹1 crore as per SEBI regulations. This makes AIF suitable for High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), and institutional investors seeking alternative investment opportunities.
How are AIF investments taxed in India?
AIF taxation depends on the category and investment strategy. Category 2 AIF investments are generally pass-through for tax purposes, while Category 3 AIF may have different tax implications. It's recommended to consult with tax advisors for specific tax planning related to AIF investments.
What is the difference between AIF and PMS?
AIF (Alternative Investment Funds) are pooled investment vehicles with ₹1 crore minimum investment, while PMS (Portfolio Management Services) offers customized portfolio management with ₹50 lakh minimum. AIF provides access to alternative strategies like private equity and real estate, while PMS focuses on equity portfolio management.
Which are the best AIF funds in India?
Top AIF funds in India include real estate funds like MO Alts IREF, private equity funds like India Business Excellence Fund, and hedge funds from managers like MOAMC, Abakkus, and Renaissance. Our platform provides access to 12+ SEBI registered AIF strategies from leading fund managers.
How to invest in AIF in India?
To invest in AIF, you need to meet the minimum investment criteria (₹1 crore), complete KYC requirements, and qualify as a sophisticated investor. Our wealth advisors can guide you through the AIF selection process, documentation, and investment procedures for different AIF categories.
Our AIF Portfolio
Comprehensive alternative investment solutions across different risk-return profiles and investment horizons.
Category 3 AIF - Hedge Fund Strategies
Sophisticated investment strategies employing diverse techniques including long-short equity, factor-based investing, and concentrated portfolios managed by experienced fund managers.
Performance (CAGR %)
Top Sectors
Investment Strategy
Takes advantage of market dynamics and economic currents, focusing on excellent firms led by skilled leadership with exposure to unlisted opportunities.
Exit Load
3% (36-48m), 2% (48-60m)
Performance (CAGR %)
Top Sectors
Investment Strategy
Focuses on excellent firms led by skilled leadership, ensuring compelling potential for success in the medium term.
Exit Load
1% (Until 12 months)
Performance (CAGR %)
Top Sectors
Investment Strategy
Focuses on Capital Preservation & Capital Appreciation through companies with high ROCE and Earnings Growth where promoters have significant skin in the game.
Exit Load
1% (Up to 1 Yr), Nil (After 1 Yr)
Performance (CAGR %)
Top Sectors
Investment Strategy
Factor-based investing with hedge against tail risk events, using growth & momentum strategies.
Exit Load
2% (Up to 1 Yr), Nil (After 1 Yr)
Performance (CAGR %)
Top Sectors
Investment Strategy
Invests in sectors with stronger ROE metrics than benchmark index, focusing on fundamentally strong companies with high resilience to market volatility.
Exit Load
2% (1 Yr), 1% (2 Yr), Nil (3 Yr)
Performance (CAGR %)
Top Sectors
Investment Strategy
Concentrated portfolio investing in companies at different states of their business lifecycles, following SQGARP framework.
Exit Load
1% (Up to 2 Yr), Nil (2 Yr Onwards)
Performance (CAGR %)
Top Sectors
Investment Strategy
Invests in high quality businesses with high ROCE run by honest promoters, following MBV (Management, Business & Valuation) approach.
Exit Load
2% (1 Yr), Nil (1 Yr Onwards)
Performance (CAGR %)
Top Sectors
Investment Strategy
Focuses on small and micro-cap companies, targeting high-growth segments with bottom-up investment approach driven by strong fundamentals.
Exit Load
1% (1 yr-2 yr), Nil (2 Yr Onwards)
Why Choose Our AIF Portfolio?
Access to exclusive investment opportunities typically reserved for institutional investors.
Top-Tier Fund Managers
Access to renowned fund managers like Vaibhav Agrawal, Pankaj Murarka, and other industry veterans with proven track records and deep market expertise.
Diversified Strategies
Comprehensive portfolio spanning equity hedge funds, real estate, private equity, private credit, and late-stage growth investments across different risk-return profiles.
Superior Returns
Target IRRs ranging from 15% to 28% across different strategies, with some funds delivering exceptional historical performance exceeding 30% CAGR.
SEBI Regulated
All funds are SEBI registered and regulated, ensuring compliance with regulatory standards and investor protection measures.
Exclusive Access
Access to closed-ended funds and limited partnership opportunities typically available only to institutional investors and ultra-high net worth individuals.
Professional Management
Dedicated fund management teams with deep sector expertise, rigorous due diligence processes, and active portfolio monitoring and risk management.
AIF Investment Process
Our structured approach ensures seamless onboarding and ongoing support for your alternative investment journey.
Consultation
Initial consultation to understand your investment objectives, risk tolerance, and liquidity requirements.
Fund Selection
Curated fund recommendations based on your profile, with detailed analysis of strategies and performance.
Documentation
Complete KYC, subscription agreements, and regulatory compliance documentation with our support.
Ongoing Support
Regular performance updates, portfolio reviews, and access to fund manager interactions and reports.
Eligibility & Requirements
Alternative Investment Funds are designed for sophisticated investors who meet specific eligibility criteria as per SEBI regulations.
Minimum Investment
Category 2 AIF: ₹1 Crore minimum investment
Category 3 AIF: ₹1 Crore minimum investment
Investor Categories
High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), Family Offices, Institutional Investors
Documentation
Complete KYC, Income/Net Worth certificates, Bank statements, and Investment experience documentation
Lock-in Periods
Category 2: 3-11 years with limited liquidity
Category 3: 1-3 years with exit load structures
₹15,000+ Crores
Total AUM across our AIF portfolio
Awards & Recognition
Our commitment to excellence has been recognized by leading industry bodies and publications.
Asia Money Brokers Poll
Top 3 Best Brokerage (India) for over a decade
CNBC Hall of Fame
Inducted into Hall of Fame at CNBC Financial Advisor Awards 2019
Forbes Super 50
Featured in Forbes Super 50 Companies in 2017
IBLA Brand of the Year
Awarded Brand of the Year at CNBC-TV18 India Business Leadership Awards 2018