Sophisticated investment vehicles for UHNIs with a minimum commitment of ₹1 Crore. Access private equity, hedge funds, and real estate.
Economic Growth Focus
Funds that invest in startups, SMEs, social ventures, or infrastructure. The government considers these socially or economically desirable.
Private Equity / Debt
Funds that do not take leverage or borrowing other than to meet day-to-day operational requirements. This is the largest category.
Complex Strategies
Funds that employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives.
| Category I | Category II | Category III | |
|---|---|---|---|
| Focus | Startups, SMEs, infrastructure | Private equity, debt, real estate | Complex/listed strategies, hedge funds |
| Leverage | Not permitted beyond day-to-day needs | Not permitted beyond day-to-day needs | Permitted, can be significant |
| Typical minimum ticket | ₹1 crore | ₹1 crore | ₹1 crore |
| Taxation | Pass-through to investor | Pass-through to investor | Taxed at fund level, ~42.7% on business income |
These funds have "Pass Through Status" under Section 115UB of the Income Tax Act. The income is taxed in the hands of the investor, not the fund.
These funds do NOT have pass-through status. The tax is paid by the fund itself.
An 18% GST applies on AIF management and set-up fees.
AIFs carry a minimum ₹1 crore ticket and are best suited to investors who already have a diversified core—including mutual funds and adequate emergency reserves—and are looking for a satellite allocation to a genuinely differentiated, uncorrelated asset class.
Investors need to be comfortable with multi-year lock-ins and illiquidity, and should understand the typical "J-curve" cash-flow shape: an initial drawdown period, followed by income, with exit-driven returns often concentrated in the fund's later years.
An AIF is generally a poor fit if the capital might be needed back within the fund's lock-in period, or if this would be a first allocation beyond mutual funds and fixed deposits.
Money n Wealth can help assess whether an AIF belongs in the portfolio at all, then compare manager experience, strategy differentiation, liquidity terms, drawdown schedules, fees and tax treatment before facilitating tailored access.
Evaluating your risk appetite, liquidity needs, and investment horizon (usually 3-7 years).
Curating top-performing funds with a proven track record, expert fund managers, and robust governance structures.
Committing capital which is drawn down in tranches over the investment period as opportunities arise.
Discover investment avenues beyond the public markets. Schedule a confidential consultation.
Is it right for you?
Our process
Understand how Category I, II and III funds differ in strategy, leverage, liquidity and taxation.
We study the team, track record of earlier series, deal pipeline, fees and governance.
Plan for drawdown-based capital calls and the expected distribution timeline.
Help tracking NAVs, distributions and the tax statements the fund issues.
FAQs
Access to SEBI-registered PMS strategies for eligible investors (₹50 lakh minimum) through an APMI-registered distributor.
Learn moreSEBI's new SIF category — long-short equity, debt and hybrid strategies with a ₹10 lakh minimum — bridging mutual funds and PMS.
Learn moreConsolidated wealth oversight for HNI and business families — investments, protection, succession and reporting in one place.
Learn moreGovernment securities, corporate bonds, tax-free and 54EC capital-gain bonds for predictable income and capital stability.
Learn moreFree, no-obligation consultation with the Money n Wealth team in Thergaon, Pune — or online from anywhere in India. Leave your number and we'll call you back within one working day.
Money n Wealth is a brand of Predics Fintech Services Pvt Ltd — AMFI-registered Mutual Fund Distributor (ARN-121995) and APMI-registered PMS Distributor (APRN-07444). We are not a SEBI-registered Investment Adviser or Research Analyst; content on this page is for information and education. Mutual fund, SIF, PMS and AIF investments are subject to market risks — read all scheme and offer documents carefully before investing.