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Learn private markets, one module at a time.
40 modules · 241 chapters
Module 01 · 15 chapters
AIF Basics and Selection
Practical answers for individuals moving from mutual funds, PMS or direct investing into Alternative Investment Funds: structure, minimums, fees, lock-in and manager selection.
What Is an AIF in India? Types, Minimum Investment, Tax and Risks
An AIF is a privately pooled investment vehicle regulated by SEBI. It can invest in venture capital, private equity, private credit, public-market strategies or other alternatives depending on its category and private...
AIF Minimum Investment: Is ₹1 Crore Paid Upfront?
The commonly quoted ₹1 crore is normally the minimum commitment, not always the amount transferred on day one. The actual payment pattern depends on the scheme. A fund may call a first instalment and draw the balance...
Category I vs Category II vs Category III AIF
The three SEBI categories describe broad regulatory buckets, not a ranking from safest to riskiest. Two funds within Category II can be more different from each other than a Category II fund is from another category....
How to Invest in an AIF in India
AIF investing is a private-placement process. The investor normally reviews the PPM and subscription documents, completes KYC and suitability documentation, signs a contribution agreement, and funds capital calls. The...
Are AIFs Worth It for Individual Investors?
An AIF is worth considering only when it provides an exposure or execution capability that the investor cannot reproduce more simply. Exclusivity is not an investment case. The question is whether the expected net ben...
AIF Returns in India: How to Verify What a Fund Reports
A target return is an objective, not a result. A gross fund IRR may exclude investor-level fees, carry and taxes. NAV growth may rely on valuations of assets that have not been sold. Verification begins by identifying...
AIF Lock-in, Tenure and Exit
Closed-ended AIFs are built around a stated tenure, but the economic exit may take longer. Portfolio companies may not sell on schedule, borrowers may restructure and the fund may enter an extension or liquidation per...
What Happens If You Miss an AIF Capital Call?
A capital commitment is contractual. Missing a call is not equivalent to pausing a mutual-fund SIP. The documents may allow the manager to charge default interest, suspend rights, dilute the investor, force a transfer...
How Much of Your Portfolio Should Be in AIFs?
There is no universal percentage. A sensible ceiling depends on liquid net worth, spending needs, business and ESOP exposure, real estate, existing private investments and the timing of future calls. The ₹1 crore mini...
AIF vs PMS for a ₹1 to 5 Crore Portfolio
A PMS generally manages securities in the client’s own account, while an AIF pools investor capital into units of a fund. That structural difference affects ownership, cash flows, reporting, taxation and exit. Neither...
AIF vs Mutual Fund: What Changes for the Investor?
A mutual fund is designed for broad participation and standardised liquidity. An AIF is privately placed with eligible investors and can pursue less liquid or more specialised strategies. The higher minimum does not p...
AIF vs Real Estate: Where Should an HNI Put ₹1 Crore?
Both can be illiquid, but the risks are different. Direct property concentrates capital in one asset and location while giving the owner control. An AIF delegates decisions to a manager and can diversify across assets...
How to Choose an AIF Fund Manager
Manager selection is the core AIF decision because investors cannot easily exit or replace the manager. Brand recognition helps with sourcing and fundraising but does not prove disciplined underwriting or good net out...
AIF Fees Explained With a ₹1 Crore Example
A ‘2 and 20’ description is incomplete. The investor must know what the 2% is charged on, for how long, which expenses sit outside it, whether the hurdle is preferred or hard, and how catch-up and carry operate. Small...
How to Read an AIF PPM Before Investing
The PPM is the central disclosure document, but it is not the only binding document. Investors should reconcile it with the contribution agreement and side letters. Begin with economics, authority and downside rather...