Alternative Investment Funds (AIFs) are privately pooled investment vehicles that collect funds from sophisticated investors for investing in non-traditional asset classes. SEBI regulates AIFs under three categories: Category I (startup funds, SME funds, infrastructure, social ventures), Category II (PE funds, debt funds, fund of funds), and Category III (hedge funds using complex trading strategies like leverage, derivatives). AIFs are meant for High Net Worth Individuals (HNIs) and institutional investors with minimum investment of ₹1 crore, offering potentially superior returns through differentiated strategies.
AIFs are available for accredited investors with minimum investment of ₹1 crore. QIBs and institutions may have different thresholds.
Choose from Category I (startup/VC), Category II (PE/credit), or Category III (hedge/long-short) based on your risk and return expectations.
Review Private Placement Memorandum (PPM), fund strategy, team track record, fees, lock-in period, and exit conditions.
Commit capital as per the fund's drawdown schedule. Funds are called in tranches as investments are identified.
Receive periodic distributions (dividends, interest, or capital gains). Full exit at fund maturity or secondary market sale.
Through Indexis Financial Services, sophisticated investors gain access to Motilal Oswal's curated AIF offerings. AIFs provide exposure to private equity, pre-IPO opportunities, structured credit, and quantitative hedge fund strategies that are simply unavailable through traditional mutual fund or PMS routes. Our team provides complete documentation support, SEBI compliance guidance, and ongoing portfolio reporting for all AIF investments.
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