Alternative Investment Funds
AIF (Alternative Investment Fund) is a privately pooled investment vehicle that collects money from investors and invests in assets outside traditional options like stocks, bonds, and mutual funds. It includes investments in private equity, venture capital, hedge funds, real estate, and structured debt, among others.
These funds are typically regulated under SEBI (in India) and are suitable for high-net-worth individuals (HNIs) or institutional investors seeking high returns with higher risk and long-term lock-ins.
Advantages of AIF
- AIFs invest in alternative assets like startups, real estate, private debt, and unlisted companies-offering broader exposure beyond stocks and bonds.
- Because AIFs invest in high-growth opportunities (e.g., startups or distressed assets), they often offer higher return potential than mutual funds or direct equity.
- Managed by seasoned fund managers with deep expertise in specialized sectors and strategies.
