What is Alternative Investment Fund Upsc?

AIFs are thus private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India like RBI, SEBI, IRDA and PFRDA. AIFs includes Private Equities, Venture Capital Fund, Hedge funds, Commodity funds, Debt Funds, infrastructure funds, etc.

What is alternate fund?

Alternative funds are mutual funds or ETFs that invest in nontraditional securities. Price fluctuations for alternative funds can be greater than traditional securities. … Alternative funds typically have higher market risk, higher expenses, and higher minimum initial investments.

What is an alternative investment fund types?

Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.

What is alternative investment fund in India?

Alternative Investment Fund (AIF) is a type of investment fund in India. Investors can use AIF for investing as well as getting benefits. It is a fund of funds that invests in asset classes other than bonds, stocks and cash.

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What is a Category II Alternate Investment Fund Upsc?

Category II: These include Alternative Investment Funds such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other Regulator.

How do I invest in alternative investments?

Investors can access alternative invests in three ways:

  1. Fund investment (such as a in a PE fund)
  2. Direct investment into a company or project (such as infrastructure or real estate)
  3. Co-investment into a portfolio company of a fund.

What is the difference between mutual fund and alternative investment fund?

“Typically, the AIF provider will give you past returns on its own performance. However, unlike mutual funds, past returns on peer funds is not available,” said Awasthi. … You may have to pay a 2% management fee on the total value of your AIF investment every year and a 20% share in the profits that the AIF generates.

What are the 4 types of investments?

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

  • Growth investments. …
  • Shares. …
  • Property. …
  • Defensive investments. …
  • Cash. …
  • Fixed interest.

Which is the best AIF in India?

Top 10 AIF in India / Best Ranked AIFs in the market

Rank AIFs Strategy
1 Abakkus Asset Manager Emerging Opportunities Fund
2 Roha Asset Managers Roha Emerging Companies Fund
3 Girik Advisors Girik Multicap Growth Equity Fund
4 Vishuddha Capital India Value and Growth Fund

Who regulates alternative investment funds in India?

Definition : In India, alternative investment funds (AIFs) are defined in Regulation 2(1) (b) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.

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How can I start an alternative investment fund in India?

1,00,000/- to SEBI by way of bank draft in favour of “The Securities and Exchange Board of India”, payable at Mumbai. 3. On receipt of registration/ re-registration fees, SEBI will grant the applicant the certificate of registration as an Alternative Investment Fund. 1.

How many AIFs are there in India?

However, with around 750+ registered AIFs in India, potential investors must always focus on quality and transparency.

What are Category 3 AIF?

Category-III AIFs include hedge funds which invest in public markets. They can take bets on market direction. This means they can also make money when markets are crashing. They are characterised by the fact that they can also invest borrowed money to provide higher returns.

What is REIT Upsc?

Real estate Investment Trust

ReITs are securities linked to real estate that can be traded on stock exchanges once they get listed. The structure of ReITs is similar to that of a mutual fund. Just like mutual funds, there are sponsors, trustees, fund managers and unit holders in ReITs.

What is Niif Upsc?

National Investment and Infrastructure Fund

NIIF is a government-backed entity established to provide long-term capital to the country’s infrastructure sector. The Indian government has a 49% stake in NIIF with the rest held by foreign and domestic investors.