What are Alternative Investment Funds
Frequently asked questions on Alternative Investment funds (AIF)
What is an AIF?
- An AIF or an Alternate Investment Fund 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.
In AIF, one does not need to open a Demat account this is a pooled vehicle; hence all clients investing at the same closure have similar returns experience.
What is the Minimum Investment Amount for an AIF?
- 1 Crore
Who should Invest in AIF?
- These are specifically made for high-net-worth (HNI) or UHNIs investors with customized investment needs.
How are AIF unique?
- AIFs combine the operational ease of a mutual fund and the flexibility of a PMS making it a perfect blend geared for generating optimum performance for a stipulated investment objective. To enhance risk-adjusted performance, these products can use complex strategies like unlisted equity investments, long-short hedging style of investments etc.
Is there a limit on the number of Investors an AIF can have?
- No scheme of an AIF shall have more than 1000 investors, Each investor has his/her own set of risk appetite, time horizon, investment objective, and so on. Depending on such parameters, one can select the most suitable AIF for himself/herself. The best route in such a scenario would be to take professional advice & help.