Okay, so not all investments are stocks or mutual funds. Some people want to invest in other things — like private companies, real estate deals, or even high-risk strategies. That’s what AIFs are for. AIF = Alternative Investment Fund.
They’re not for beginners, honestly. These are mostly for experienced folks who understand how risk works and want to try different stuff beyond the usual share market.
There are 3 types:
- Category I: Puts money into start-ups, SMEs, infra projects. Good for the economy, less risky, but returns are slower.
- Category II: No fixed rules. Mostly used for private equity and debt funds. Medium to high returns. Risk is higher.
- Category III: Aggressive stuff. Can involve trading, derivatives, hedge fund strategies. High risk. Possible high return.
Why some people go for it:
- They’ve already done stocks/mutual funds and want something different.
- They want to invest in startups or real estate — not just listed companies.
- They like that pros manage these funds instead of DIY.
- They don’t mind locking money for a few years if the returns are worth it.
But again, AIFs aren’t for everyone. There are minimum investment rules. Risks are higher. You need to know what you’re getting into.
Still confused? Chill. Just reach out. We’ll break it down without all the finance jargon.