Alternative Investment Funds (AIFs)

Alternative Investment Funds represent a distinct category of investments that diverge from traditional asset classes. While conventional investment strategies typically focus on stocks, bonds, and cash, AIFs encompass a broader range of options.

Categories of AIFs

AIFs are classified into three main categories:

  1. Category I: Focuses on investments in startups, small and medium enterprises (SMEs), and ventures with significant socio-economic impact.

  2. Category II: Allows for investments in debt securities and equity funds.

  3. Category III: Aims to generate short-term returns through complex trading strategies.

Types of Alternative Investments

AIFs include various investment options such as:

  • Private equity

  • Hedge funds

  • Real estate

  • Arts and antiques