An Alternative Investment Fund (AIF) is an investment in which professional managers pool the money from various inventors and deploy it into a wide range of assets like private equity, real estate, hedge funds, venture capital, and more non-traditional investments. AIFs provide investors with access to investment opportunities that can give them higher returns and diversification benefits. AIF is regulated by the Securities and Exchange Board of India (SEBI), 2012.
SEBI has categorised Alternative Fund Management in 3 categories:
AIF Cat I funds deploy their money into small and medium-sized companies that have just started as well as new businesses that have the potential to grow and succeed. These subcategories are angel funds, venture capital funds, social venture funds, and infrastructure funds.
AIF Cat II funds do not have complex strategies to use limited borrowing and leverage for their daily needs, which makes them less risky as compared to Category III funds. They provide a middle-ground investment choice and include subcategories like private equity funds, real estate funds, debt funds, and fund of funds.
AIF Cat III funds are high-risk investments because they use complex trading strategies and leverage by investing in both unlisted and listed derivatives. It is structured as either open-ended or closed-ended funds. These subcategories are hedge funds and pipe (Private Investment in Public Equity) funds.
Investing in Alternative Investment Fund (AIF) is a smart strategy for diversifying your portfolio, potentially increasing returns, and reducing risks. These approaches provide a private and exclusive path to potentially higher returns and diversified portfolios.
Sepulveda Fund Management presents the Arka India Realty Fund, a Category-II Real Estate Alternative Investment Fund licensed by SEBI. With a minimum investment of INR 1 crore, this fund offers access to prime real estate assets, expert management, diversification, regular income, and capital growth potential. Join us on this exclusive investment journey today.
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Alternative investment funds (AIFs) in which professional managers pool the money from
many investors to invest in many things like private equity, real estate, venture capital,
hedge funds, and more non-traditional investments.