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 as investments are identified, while another may require most or all capital early.

Commitment is the amount the investor legally agrees to provide.

Drawdown or capital call is the amount requested under the agreed schedule.

Paid-in capital is the cumulative amount already contributed; unfunded commitment is the balance still callable.

Treating the unfunded balance as free cash can create a default later.

The fund may call capital during a weak market or personal liquidity event.

A commitment can remain callable within the period specified in the documents.

Before acting, answer five questions in writing: request an illustrative drawdown schedule; ring-fence the unfunded commitment in liquid assets; check notice periods and accepted payment routes; read default interest, dilution and forfeiture clauses; and model calls arriving earlier than expected.

Invest only after you can fund the entire commitment without selling long-term assets at the wrong time.