The basics
An Alternative Investment Fund is a private fund registered with SEBI. It can invest in unlisted companies, private credit and other areas that most mutual funds stay away from.
The three categories
Category I funds invest in areas like startups, small businesses and infrastructure. Category II covers private equity and private debt. Category III funds use more complex strategies, sometimes in listed markets.
What to check before investing
The minimum is generally ₹1 crore, and your money can stay locked in for years. Fees are usually higher than in a regular fund, and you can lose money.
If you have a large portfolio, an AIF can be a small part of it. Sort out your basics first.
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This is general information. It isn't personal advice. Investments in the securities market are subject to market risks. Read all related documents carefully before investing. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Insurance is the subject matter of solicitation. Past performance does not guarantee future results.