AIF (Alternative Investment Fund) is an investment fund regulated by SEBI that invests in non-traditional assets, unlike mutual funds.

Key Features of AIF

• SEBI-registered
• High minimum investment (₹1 crore for investors)
• Suitable for high-net-worth & institutional investors
• Longer lock-in period
• Higher risk–return potential

 

Categories of AIF

Category I – Growth & social impact

• Venture Capital Funds
• SME Funds
• Infrastructure Funds

Category II – Private investment

• Private Equity Funds
• Debt Funds
• Fund of Funds

Category III – High-risk strategies

• Hedge funds
• Long-short funds
• Derivative-based strategies

AIF vs Mutual Fund

“AIF vs. Mutual Funds Feature Alternative Investment Funds (AIF) Mutual Funds (MF) Minimum Investment…”

 

AIF vs. Mutual Funds

Feature	Alternative Investment Funds (AIF)	Mutual Funds (MF)
Minimum Investment	₹1 Crore (₹25 Lakh for fund employees)	₹100 – ₹500 (via SIP)
Asset Classes	Non-traditional: Private equity, startups, hedge funds, real estate	Traditional: Listed stocks, bonds, gold, money market
Liquidity	Low; typically 3–7 year lock-ins	High; daily redemptions for open-ended funds
Regulation	SEBI (AIF) Regulations, 2012	SEBI (MF) Regulations, 1996
Fee Structure	High: ~2% Management + 20% Performance Fee	Low: 0.5% – 2.25% Total Expense Ratio (TER)

 

For more details , you may feel free to contact Pentad Securities Private Limited or call us @808 907 4445

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👉Click on https://kyc.pentadsecurities.com/pentad/individual_new

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