AIF
Alternative Investment Funds (AIFs) are privately pooled investment vehicles that invest in assets beyond traditional stocks and bonds. They cater to high-net-worth individuals (HNIs) and institutional investors seeking diversified investment opportunities.
Categories of AIFs:
- Category I – Invests in startups, SMEs, and socially beneficial sectors.
- Category II – Includes private equity funds, debt funds, and real estate funds.
- Category III – Uses complex strategies like hedge funds and PIPE (Private Investment in Public Equity) funds.
AIFs are regulated by SEBI (Securities and Exchange Board of India) and offer higher risk-reward potential compared to conventional investments.