AIF- Alternative Investment Fund is a fund established in India in the form of a company or partnership and trust which runs on a private basis to collect funds from investors to invest through a proper investment policy.
Alternative Investment is a different type of investment strategy. According to the SEBI AIF regulations policy 2012, the following are the alternative investment funds listed below:
8 Types of AIF – Alternative Investment Funds
Venture Capital Fund (VCF)
The meaning of VCS “an alternative investment fund on new business setups such as new products, new services, technology, or new business models, and included an angel fund.” This investment is mostly applicable to asset-light businesses.
Angel Fund
An angel fund is a sub-category of venture capital funds that collect funds from angel investors and alternative investment funds according to the rules of SEBI AIF Regulations.
Private Equity Fund (PE)
PE funds mean, according to the stated objective of the fund, an AIF which invests essentially on the equity or equity-linked partnerships or instruments interests of investor companies. Private equity funds are not involved in new business setups but for later stages of business to establish and scale up the business finance.
Debt Fund
An AIF invested according to the fund's stated objective on debt securities or debt of listed and unlisted invested companies means a Debt Fund. Many investors consider the private debut fund despite the traditional investors because of their liquidity. Even the bonds and Non-convertible debentures issue debt securities by the listed companies.
Infrastructure Fund
infrastructure funding or equity financing through AIFs is a new phenomenon in India. "Infrastructure fund used for the partnership interest, unlisted securities, listed debt or securitized debt instruments and vehicles used for the developing or operating the infrastructure projects".
SME Fund
This fund is primarily invested in the unlisted securities of investor companies and SMEs. Ing is Small and Medium Enterprise and operates under the same Act 2006 of Micro, Small, and Medium Development.
Hedge Fund
"An AIF which adopts complex trading strategies or invests and trades in complex products or diverse risks having securities of unlisted and listed Derivatives is known as Hedge Fund".
Social Venture Fund
A Social Venture Fund is the investment on securities or units of social ventures that satisfy norms of social performance laid down by the fund, and the investors will receive muted or restricted returns".
Comments