Who can invest in alternative investment funds?

Who can invest in AIF?

Eligibility Criteria. Investors can be Indian, NRI or foreign nationals. Minimum corpus should be Rs20cr for each scheme and Rs10cr for Angel Funds. Minimum investment by each investor should be Rs1cr or Rs25 lakh (in case of employees/director/fund manager of AIF).

Can an individual invest in AIF?

It is an investment option for high rollers, including domestic and foreign investors in India. Generally, institutions and high net worth individuals invest in AIF as it needs a high investment amount.

Can retail investors invest in alternative investment funds?

The markets regulator has introduced a concept of “accredited investors” and said that such investors will be allowed to invest in alternative investment funds such as private equity, venture capital , social schemes and hedge funds without requiring to follow the minimum investment norms.

Who can invest in AIF in India?

The eligibility criteria/conditions are as follows:

  • Investors can be Indian, NRI or foreign. …
  • Minimum corpus should be Rs. …
  • Minimum investment by each investor should be Rs. …
  • There are however no minimum investment requirement on units of AIF issued to the employees of the manager for profit sharing;
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Can NBFC invest in AIF?

Therefore, the regulations do not permit a CAT I AIF – VCF to invest more than 1/3rd of its investable corpus into entities that do not qualify as venture capital undertakings, including NBFCs.

What is the minimum investment in AIF?

Minimum investment amount: The minimum investment required in PMS is Rs 50 lakh while for AIFs it is a minimum of Rs 1 crore. Pooling of funds: By nature, AIFs are a pooled investment fund while a PMS is a tailor-made portfolio of securities and involves no pooling of investor funds.

Is mutual fund an alternative investment?

What Are Alternative Funds? The term “alternative funds” refers to mutual funds, hedge funds, or ETFs that invest in non-conventional investment securities. … Alternative funds may invest in real estate, loans, commodities, and unlisted securities, such as art or jewelry.

Can an AIF be listed?

The latest managed equity portfolio product in the market are the long-only listed equity Category III Alternative Investment Funds (AIFs). AIFs are managed funds regulated by the Securities and Exchange Board of India (Sebi) and Category III AIF is the only one that can invest in listed securities, including equity.

Can AIF invest in stock market?

Yes. An AIF may launch schemes subject to filing of placement memorandum with SEBI. Further, it may be noted that prior to launch of scheme, an AIF is required to pay Rs. 1 lakh as scheme fees to SEBI while filing the placement memorandum.

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.
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Who is an anchor investor?

An anchor investor can be a Qualified Institutional Buyer (QIB) — excluding the family members, relatives and merchant bankers– who makes a bid for minimum Rs 10 crore. And up to 30 per cent of the total issue size can be allotted to anchor investors.

What are the 4 investment alternatives?

Conventional categories include stocks, bonds, and cash. Alternative investments can 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.

Can NRI invest in AIF?

Can NRIs, PIOs and OCI invest in AIFs? AIFs accept investments from all Indians, including NRIs, PIOs, and OCIs by issuing units. The fund may have restrictions in some geography as per the AMC compliance policy.

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 can I create AIF in India?

To set up an AIF, an investor needs to submit a required application form and a bank draft of Rs. 1 Lakh to SEBI. Thereafter, SEBI will evaluate the application and will notify about its success to the investor within 21 days.