Alternative Investment Funds

Alternative investment Funds are a non-conventional investment avenue that puts your money primarily in real estate, private equity or hedge funds. Since these funds have no correlation with the stock or debt market, investing in them can diversify your portfolio and mitigate market risk to a great extent. Alternative investment Funds (AIF) pool cash from refined private investors.

This money is put in different tools as per the investment policy of the AIF. The minimum investments and costs for Registered Alternative Investment Funds are beyond typical investments. However, being open solely to private investors, AIFs are considered an illiquid investment option. However, there is a cap on the investment amount of Rs. 1 crore. The same is cut down to Rs. 25 lakhs, for directors, employees and fund managers of the AIF. The number of investors per scheme allowed in AIFs is restricted to 1,000 and 49 in Angel funds. Resident Indian individuals, Non-Resident Indians (NRIs) and foreign nationals can invest in alternative investment funds.

If you are looking for some of the Best Alternative Investment Options in Bangalore, EldersWealth can be the right choice for you. Our platform aims to offer some of the Best Alternative Investment Funds for investors. It is important to find the best Alternate Asset Management in Bangalore and even more important to thoroughly understand the investment product before putting your hard-earned money in it. EldersWealth can help you understand AIFs in detail and help you take the best financial foot forward by diversifying your asset across Registered Alternative Investment Funds.

Registered Alternative Investment Funds, also known as private investment funds, are divided into three categories.

Category I These funds invest in early-stage ventures or start-up firms, SMEs, infrastructure or other sectors which are considered important for the growth of the Indian economy.

This category consists of some of the Best Alternative Investment Funds such as Venture Capital Fund (VCF) where the investor’s money is pooled in various ventures or social venture funds, infrastructure fund, angel funds. Investors with high-net-worth giving monetary support to small startups or entrepreneurs in exchange for ownership in the company are known as Angel investors.

Category II These are typically real estate funds or private equity (PE) funds or funds for distressed assets managed by seasoned fund managers. PE funds invest in unlisted private firms as these companies cannot raise capital through IPO or bond issuance. This category also consists of debt funds and fund of funds.

FAQ

Who is eligible to invest in AIF?

Those seeking high risk-high return investment products should consider Alternate Asset Management in Bangalore. EldersWealth can assist you in finding the Best Alternative Investment Funds.

Here are the eligibility criteria for investing in Alternative Investment Funds

  • The minimum corpus should be Rs20cr for each scheme and Rs10cr for Angel Funds.
  • The minimum investment by each investor should be Rs1cr or Rs25 lakh (in the case of employees/director/fund manager of AIF).
  • The maximum number of investors in each scheme can be 1,000, but 49 in the case of Angel Funds.
  • Category I & II AIF can be close-ended only. With a minimum of 3 years, Category III can be either open or close-ended.
  • The sponsor shall have a continuing interest in the respective AIF, of not less than 2.5% of the corpus (AIF I & II) and 5% of the corpus in AIF III or Rs5cr (for each scheme), whichever is lower.

What is the minimum investment amount required to invest in an AIF?

There is a cap on the investment amount of Rs. 1 crore. The same is cut down to Rs. 25 lakhs, for directors, employees and fund managers of the AIF.  

Is there any limit on the number of investors who can be a part of an AIF scheme?

The number of investors per scheme allowed in AIFs is restricted to 1,000 and 49 in Angel funds.

Are AIFs open-ended, i.e., open to subscription for the overall tenure of the fund?

Category I and Category II Alternative Investment Funds are close-ended with a minimum tenure of 3 years. However, Category III AIFs can be open-ended in nature.

How can I invest in AIF in India?

If you are looking for some of the Best Alternative Investment Options in Bangalore, EldersWealth can be the right choice for you. Our platform aims to offer some of the Best Alternative Investment Funds for investors. It is important to find the best Alternate Asset Management in Bangalore and even more important to thoroughly understand the investment product before putting your hard-earned money in it. EldersWealth can help you understand AIFs in detail and help you take the best financial foot forward by diversifying your asset across Registered Alternative Investment Funds.

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