Alternative Investment Funds

    Sophisticated investment vehicles for UHNIs with a minimum commitment of ₹1 Crore. Access private equity, hedge funds, and real estate.

    SEBI Classification of AIFs

    Category I

    Economic Growth Focus

    Funds that invest in startups, SMEs, social ventures, or infrastructure. The government considers these socially or economically desirable.

    • Venture Capital Funds
    • SME Funds
    • Social Venture Funds
    • Infrastructure Funds

    Category II

    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.

    • Private Equity Funds
    • Debt Funds
    • Real Estate Funds
    • Distressed Asset Funds

    Category III

    Complex Strategies

    Funds that employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives.

    • Hedge Funds
    • PIPE Funds

    Taxation of AIFs

    Cat I & II (Pass Through)

    These funds have "Pass Through Status". The income is taxed in the hands of the investor, not the fund.

    • Business Income: Taxed at fund level (rare).
    • Capital Gains/Other: Taxed at investor's slab/rates.
    • TDS: 10% deducted by fund on payouts.

    Cat III (Fund Level)

    These funds do NOT have pass-through status. The tax is paid by the fund itself.

    • Tax Rate: Highest Marginal Rate (approx 42.7%) on business income.
    • Capital Gains: Taxed as per equity/debt norms at fund level.
    • Post-Tax: Returns are handed to investors tax-free.

    Investment Process for AIFs

    01

    Profile Assessment

    Evaluating your risk appetite, liquidity needs, and investment horizon (usually 3-7 years).

    02

    Fund Selection

    Curating top-performing funds with a proven track record, expert fund managers, and robust governance structures.

    03

    Capital Commitment

    Committing capital which is drawn down in tranches over the investment period as opportunities arise.

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