Investment across early-stage start-ups, venture capital, angel funds, and the infrastructure sector. The government and regulators refer to this category as socially or economically desirable.
Alternative
Investment Funds
Elevate your investment strategy with Alternative Investment Funds (AIFs). Gain access to a diverse range of AIFs, providing ample opportunities for high returns and portfolio diversification. Managed by top-tier fund managers, AIFs span various asset classes including private equity, real estate, hedge funds, and more, ensuring comprehensive investment options tailored to your financial goals.
Expand Your Portfolio Beyond
Conventional Instruments with
Alternative Investment Funds.
Invest in CAT-I, CAT-II, CAT-III AIFs.
Explore unconventional assets such as venture capital, angel funds, hedge funds, and private equity.
Minimum investment amount
of INR 1 crore.
Start Investing in AIF with
VNN Wealth.
Expect a call within 30 mins (Mon-Fri, 9:30 AM - 6:30 PM)
3 Categories Of Alternative Investment Fund (AIF)
- Venture Capital Funds invest in start-ups with high growth potential. VCFs offer funding to these companies by buying the equity stake. These funds often target a specified sector which is declared at the launch of VCF. Social VCFs invest in companies that create a positive impact on society.
- Angel Funds raise investments from angel investors with at least 2 crore net tangible assets. Angel investors are required to have investment experience, serial entrepreneurship experience, and ten years of experience in a senior management role. Investors are allotted units of the funds.
- Infrastructure Funds invest in companies that develop infra projects such as roads, railways, renewable energy, etc. These funds generate capital from private investors. Investors can purchase units of these funds.
Benefits Of Investing In Alternative Investment Fund
1. Specialized Diversification
In Your Portfolio
AIFs allow investors to expand their portfolios beyond conventional investment instruments such as private equity, angel funds, venture capital, unlisted stocks, and more.
2. Potential Of Earning
Superior Returns
With a large corpus, fund managers have enough flexibility and scope to explore unique investment strategies. They aim to maximize returns using their analysis and expertise.
3. Lower
Volatility
The underlying assets in alternative investment funds are less volatile compared to pure equity funds. Some of these instruments are not listed on the stock market, hence, do not fluctuate frequently.
Who Should Invest in AIF
AIFs are ideal for sophisticated investors, HNIs, and ultra HNIs
with at least 1 crore to invest.
Investors seeking non-conventional investment opportunities such as
private equity, venture capital, angel funds, and hedge funds can invest in AIFs.
AIFs are also suitable for investors looking to park their funds for a longer horizon while also looking to diversify their portfolios.
As AIFs have non-conventional asset classes, the strategic investment
can generate superior returns. Investors with experience in the equity
market and a high-risk appetite can consider exploring AIFs.
Taxation
AIF Category I and II: Short-term Capital gains will be taxed at 15% whereas long-term will be taxed at 10%. Returns on debt instruments will be taxed as per the investor’s tax slab.
AIF Category III: Taxed at the fund level with the highest income tax slab which is about 42%. Investors will receive the gains after the tax deduction at the fund level and, hence do not have to pay any additional tax.
FAQs
What is the minimum investment for AIF?
The minimum investment amount for AIFs is 1 crore.
