Alternative Investment Funds · beginner
AIF Foundation
What an Alternative Investment Fund is: a privately pooled vehicle registered with SEBI, its three categories, the ₹1 crore minimum and who is exempt, tenure and liquidity, how AIF income is taxed, and what the placement memorandum is for.
- 01What is an Alternative Investment Fund (AIF)?An Alternative Investment Fund (AIF) is a privately pooled investment vehicle registered with SEBI. This lesson explains what that means, how an AIF raises money, the limits on who and how many may invest, and the risks that come with the structure.
- 02The Three AIF Categories — I, II and IIISEBI's AIF Regulations place every Alternative Investment Fund in one of three categories. This lesson explains which funds belong in Category I, II and III, and how the category decides a fund's structure and its freedom to borrow or use leverage.
- 03AIF Tax Treatment, Tenure and LiquidityTax and exit rules for an AIF depend on its category. This lesson explains pass-through taxation for Category I and II funds and its exceptions, how Category III differs, the minimum tenure rule, and why units of a close-ended fund are illiquid.
- 04The ₹1 Crore Minimum, Accredited Investors and the Placement MemorandumSEBI sets a minimum investment of ₹1 crore per investor in an AIF, with a lower figure for the fund's own employees and directors and an exemption for accredited investors. This lesson covers the minimum, who is accredited, and what the placement memorandum contains.