Alternate Investment Funds

Discover Smarter Investing with Greater Flexibility

Alternative Investment Funds are a dynamic and evolving investment avenue, ideal for seasoned investors seeking diversification, higher returns, and personalized strategies. At Sethia Financial Services, we help clients tap into the potential of AIFs with end-to-end advisory and execution support.

Why Invest in Alternative Investment Funds?

Tailored to Specific Needs

AIFs are structured for high-net-worth investors, with customizable investment strategies across asset classes like equity, bonds, private equity, and more — allowing you to meet very specific financial goals.

Potential for Higher Returns

Compared to traditional investment options, AIFs offer the opportunity for superior returns. With larger ticket sizes and professional fund managers, your money benefits from agile, high-impact strategies.

Diversification Across Assets

AIFs invest in a wide range of instruments and sectors, effectively minimizing asset-specific risks while optimizing portfolio performance.

Types of Alternative Investment Funds

As defined by SEBI (Securities and Exchange Board of India), AIFs are classified into three categories:

Category I AIF

Invests in sectors with high growth potential like:
• Startups & SMEs
• Infrastructure
• Social enterprises Includes: Venture Capital Funds, Angel Funds, Social Venture Funds, and Infrastructure Funds.
Structure: Close-ended funds.

Category II AIF

For investors seeking stable, long-term gains without speculative leverage. Includes:
• Private Equity Funds
• Debt Funds
• Distressed Asset Funds
• Fund of Funds Structure: Close-ended funds.

Category III AIF

Ideal for investors comfortable with higher risk and seeking short-term gains using complex strategies. Includes:
• Hedge Funds
• PIPE (Private Investment in Public Equity) Funds

Frequently Asked Questions (FAQs)

1. What is the minimum investment in an AIF?

The minimum investment required is ₹1 crore. However, employees or directors of the AIF can start with ₹25 lakh.

While mutual funds are highly regulated and designed for retail investors, AIFs cater to sophisticated investors and offer a wider array of investment instruments and strategies. AIFs allow greater flexibility, access to private markets, and personalized structuring.

AIFs are suitable for:

  • High-Net-Worth Individuals (HNIs)
  • Family Offices
  • Corporates and Institutions
  • Trusts and Endowments
  • Experienced investors looking beyond traditional products

With over two decades of financial expertise, we at Sethia Financial Services offer:

  • Personalized AIF advisory
  • Due diligence and risk analysis
  • Access to top-performing AIFs across India
  • Transparent and client-first processes

Let us help you diversify beyond the ordinary and build high-performing portfolios with the power of Alternative Investments Funds (AIFs).