An Alternative Investment Fund (AIF) stands out as a unique category of investment methods that diverges from conventional investment opportunities. These funds are privately pooled and cater primarily to institutions and High Net Worth Individuals (HNIs), given the substantial investment requirements associated with them.
Terms for investing in AIFs
For investors exploring investment opportunities in AIFs could be worthwhile, provided they meet the following eligibility criteria.
- Eligible investors: Resident Indians, Non-Resident Indians (NRIs), and foreign nationals are permitted to invest in these funds.
- Minimum investment requirements: The minimum investment threshold for individual investors is Rs. 1 crore, whereas directors, employees, and fund managers must commit a minimum of Rs. 25 lakhs.
- Lock-in period: AIFs typically impose a minimum lock-in period of three years, ensuring a long-term investment horizon and commitment from investors.
- Investor limitations: The number of investors permitted in each AIF scheme is capped at 1000, with the exception of angel funds, where the maximum number of investors extends to 49.
