Alternative funds

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What are AIFs?

Alternative Investment Funds (AIFs) are pooled investment vehicles that generally focus on non-traditional asset classes such as private equity, venture capital, hedge funds, real estate, and more.

Why Invest in AIF?

Higher Returns

AIFs offer potential for higher returns, with large pooled funds allowing expert managers to craft strategies aimed at maximizing growth.

Lesser Liquidity

Alternative investments managers tend to hold more concentrated portfolios, also AIFs generally have lesser liquidity of assets held.

Diversification

AIFs broaden your portfolio diversification by investing in non-traditional assets.

Who Can Invest in AIF?

Indian Residents, NRIs, and Foreign Nationals

You can invest in AIFs whether you’re in India or abroad, unlocking global investment opportunities.

Joint Investments Allowed

Invest with your spouse, parents, or children, making it easier to achieve shared financial goals.

Exclusive for HNIs

The minimum investment amount is Rs 1 crore for investors.

Minimum Lock-In Period

AIFs may have a lock-in period depending on the asset class AIF is investing in.

Different Types of AIFs in India

AIFs in India are categorized into three types, each with distinct investment focuses.

Invest in early-stage businesses, social ventures, SMEs, and infrastructure projects that contribute positively to society or the economy. AIF Category 1 is further classified into;

Category 1 AIF	Invest in
Venture Capital Funds	Early-stage ventures or start-ups with high growth potential.
SME Funds	Small and medium enterprises with a good track record.
Social Venture Funds	Invest in projects with a positive societal or environmental impact, like clean energy.
Infrastructure Funds	Infrastructure projects such as railways and airports.

Invest in private equity, debt securities, and other funds without using leverage, except for covering operational costs.AIF Category 2 is further classified into;

Category 2 AIF	Invest in
Private Equity	Provide equity to unlisted companies for capital raising.
Debt Funds	Fixed-income securities like bonds from unlisted companies
Fund of Funds	Allocate capital across various AIFs rather than direct investments

Employ advanced strategies, including the use of leverage and complex trading methods, for investments in listed or unlisted derivatives.AIF Category 3 is further classified into;;

Category 3 AIF	Invest in
Private Investment in Public Equity (PIPE)	Listed companies at discounted prices when their share values drop.
Hedge Funds	Use diverse strategies like – short selling, derivatives, margin trading, and futures to maximize returns.

How To Invest in AIFs Through Moolaah?

Due to the variety of investment strategies and the high minimum investment requirements, AIF investments through Moolaah are managed offline.

Connect with us for more information on investing in AIFs.

Unlock Exclusive Investment Opportunities

Discover AIFs with Moolaah to unlock unique opportunities and enhance your portfolio with higher returns and higher diversification.

Frequently Asked Questions

What are Alternative Investment Funds (AIFs)?

An AIF is an investment fund that pools money to invest in assets like private equity, hedge funds, and real estate. It’s usually targeted at High Net Worth Individuals (HNIs) and institutions due to the high minimum investment.

How many categories of AIF are there?