Thursday, May 14, 2020

What are alternate Investment Funds ?


AlternateInvestment Funds or AIFs in India are a product the type which goes beyond the usual stocks, bonds or Mutual Funds. SEBI defines AIFs  “Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with defined investment policy for the benefit of its investors.” 

AIFs are of three types in India – Category 1, 2,& 3. Category 1& 2 deal with seed funding, angel funding, private equity and real estate funds where as Category 3 deals with asset classes that do not fall in the Category 2& 3 like Equities, derivatives, commodities, debt etc…. 

AIF investing has become quite popular in India since the last 5 years as a lot of sophisticated HNI investors have opted for these funds to enhance their wealth creation. AIFs solve specific needs of investors like investing in private equity or seed funds, invest in long-short strategies to reduce volatility etc… 

PMS AIF WORLD are a modern-day analytics and content based Wealth Management firm helping today’s and tomorrow’s investors to create wealth over sustained and long periods of time.



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