product and services

 Alternative Investment

In India, There are Four Popular Avenues of Investing via Wealth Management Platforms. They are:

  • Mutual Funds
  • Fixed Income
  • Portfolio Management Services (PMS)
  • AIF’s (Alternate Investment Funds)


Mutual Funds & Fixed Income offerings are more popular with Retail Investors. However, High Net-Worth Investors are on constant lookout for specialized offerings that could generate high returns even if it means taking higher risks. For such Investors the options are PMS or AIF. While PMS services are focused only on the listed space, AIFs provide a wider bouquet of investment offerings.

An Alternative Investment is an asset that is not one of the conventional Investment types, such as stocks, bonds and cash. Most Alternative Investment assets are held by Institutional Investors or accredited, High-Net-Worth Individuals because of the complex natures and limited regulations of the investments. Alternative Investments include Pre-IPO deals, Complex Equity Strategies, Private Equity, Hedge Funds, Managed Futures, Real Estate, Commodities, Derivatives Contracts etc.

Wealthy Investors can avail of such Investment Opportunities by Investing through AIFs, which are not available normally. For example, a lot of Pre-IPO deals happen via AIFs at attractive valuations.

Alternative Investments typically have a low correlation with those of standard asset classes, which makes them suitable for Portfolio Diversification. Because of this many large Institutional Investors, Ultra High Net-Worth Individuals & Family Offices invest a small portion of their Portfolios in such Offerings.

AIFs offer a chance for our Investors to go off the beaten track and Invest in securities that are unavailable to the common investor. While AIFs can also invest in listed equities, the structure allows for investments in securities which are unavailable under say a traditional mutual fund platform.

Categories of Alternative Investment Funds (AIFs)

As per Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Alternative Investment Funds shall seek registration in one of the three categories


Category 1 AIFs which invest in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable and shall include venture capital funds, SME Funds, Social Venture Funds, Infrastructure Funds and such other Alternative Investment Funds as may be specified.

Category 2Various types of funds such as Real Estate Funds, Private Equity Funds (PE funds), Funds for distressed assets, etc. are registered as Category II AIFs.

Category 3Various types of Funds such as Hedge Funds, PIPE Funds, etc. are registered as Category III AIFs.

  • Minimum Investment is Rs 1 crore.
  • Investments typically happen on a drawdown basis over a period of 12 to 24 months.

Fund Raising and Investment Restrictions For AIFs

AIF’s raise funds through private placement and they cannot accept from an Investor an Investment of value less than Rs. 1 Cr. The fund or any scheme of the fund cannot have more than 1000 investors and each Scheme should have a corpus of Rs. 20 Crore. The manager or sponsor/promoter of the AIF should have a continuing interest in the AIF of not less than 2.5% of the initial corpus or Rs.5 crore whichever is lower.

There are some really exciting Alternate Investment Opportunities available currently To know about the latest AIF offerings available Click here

Please Provide Your Details
Attention InvestorsKYC
Contact Us

Mobile No : +91 99674 32226
Email id :


ReliaBull Financial Services Private Limited,
No 4-D, 4th Floor, Victoria Plaza,
SV Road, Above Kora Showroom,
Santacruz West,
Mumbai – 400054


For all the Latest Market News, Investment Ideas.

Follow us

AMFI Registration No:88227

ARN Initial Registration Date: 05-Mar-2013

ARN Expiry Date: 04-Mar-2025

A Reliabull Financial Services Venture

Designed & Developed by  Accord Fintech Pvt. Ltd.