AIF – Alternative Investment Funds
Alternative strategies for investors with a long horizon.
Alternative Investment Funds (AIFs) are privately pooled vehicles regulated by SEBI that invest in strategies beyond traditional stocks and bonds, open only to investors who meet SEBI’s eligibility and minimum commitment.
What is it?
AIFs are regulated by SEBI and fall into categories, including funds investing in private equity, venture capital, credit and hedge-style strategies.
We help you obtain the fund’s private placement memorandum, fee and lock-in details, and complete the documentation. We do not advise on whether an AIF is appropriate for you; please read the memorandum and consult a qualified professional.
Who can invest?
- Investors who meet SEBI’s minimum commitment per investor
- Accredited investors, where the fund is open only to them
- Investors who can commit capital for the full tenure of the fund, as AIFs usually have limited or no early exit
How it works
- 1
Information
The fund’s private placement memorandum, category, strategy, fees, lock-in and exit terms.
- 2
Eligibility
KYC, SEBI minimum commitment and accreditation, where applicable.
- 3
Commit
Documentation with the fund, including the drawdown schedule.
- 4
Service
Reports and capital-call notices are issued by the fund; we help with coordination.
Key things to know
- AIFs are high risk and may be illiquid. You could lose part or all of your investment.
- A minimum commitment applies; ask us for the current figure under SEBI rules.
- Read the private placement memorandum carefully before investing.
- Kanethic acts only as a distributor and does not give investment advice on AIFs.
Frequently asked questions
What is an AIF?
An Alternative Investment Fund is a privately pooled investment vehicle regulated by SEBI that invests in assets and strategies outside regular mutual funds, such as private equity, venture capital, private credit and long-short strategies.
What are the AIF categories?
SEBI classifies AIFs into three categories based on strategy and risk. Category I includes venture and infrastructure-type funds, Category II includes private equity and private credit funds, and Category III includes strategies such as hedge-style funds.
What is the minimum investment?
SEBI sets a minimum commitment per investor. Please ask us for the current amount, as it can be revised.
Can I exit an AIF early?
Many AIFs have a fixed tenure and limited or no early exit. Plan to stay invested for the full term and keep enough liquidity elsewhere.
How are AIFs different from PMS?
A PMS holds securities in your own demat account and is managed individually. An AIF pools investors’ money into one fund, with its own terms, lock-in and fee structure.
Who can invest in an AIF?
Only investors who meet SEBI’s eligibility conditions and minimum commitment, and who accept the risk and limited liquidity described in the private placement memorandum. We do not advise on whether an AIF is appropriate for you.
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