Where do Alternative investment Fund invest
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.
Where do AIF invest?
Alternative Investment Fund comprises pooled investment funds which invest in venture capital, private equity, hedge funds, managed futures, etc. In simpler terms, an AIF refers to an investment which differs from conventional investment avenues such as stocks, debt securities, etc.
Who can invest in AIF funds?
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).
What do PE funds invest in?
Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity.
Can AIF invest in listed companies?
In a circular on Monday, Sebi specified that the investment limit in listed equity has to be calculated based on the NAV of the fund on the business day immediately preceding the date on which the category III AIF makes investment.
Are mutual funds AIF?
AIF consists of investment funds that are privately pooled that invest in private equity, venture capital, hedge funds, managed funds, etc. AIF means an investment that differs from conventional investments such as debt securities, stocks, etc.
Who regulates alternative investment funds in India?
Securities and Exchange Board of 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.
How is AIF different from mutual fund?
While AIF’s do have the ability to offer investor’s complex and differentiated investment strategies, they do have some disadvantages. A high Rs. 1 cr minimum investment, makes AIF’s clearly out of reach for most retail investors. Additionally, AIF’s do not offer investors the same tax advantages as mutual funds.
Can NBFC invest in AIF?
With the potential to attract a lot of capital, AIFs can be a suitable vehicle to channel funds from sophisticated investors, individual and institutional, to purchase distressed loans from banks and NBFCs (Non-Banking Finance Companies), Tyagi said.
Can AIF invest in LLP?
Thus, Regulation 17 (a) read with Regulation 2 (1) (c) of the AIF Regulations indicates that Category II AIFs can invest in LLP.
Can AIF invest outside India?
AIFs are permitted to invest in securities of companies incorporated outside India subject to the conditions or guidelines issued by the RBI and SEBI.
Can an AIF invest in another AIF?
The Circular provides a framework for AIFs to invest in units of other AIFs alongside directly investing into investee companies. In other words, AIFs are now permitted to employ the fund-of-funds (“f-o-f”) strategy along with the direct investment strategy within the same fund.
How can I open AIF in India?
On receipt of the registration or the re-registration fees, the SEBI shall grant a certificate of registration to the applicant as an AIF. After the conclusion of the registration of the AIF, it is necessary that it complies with the reporting requirements specified under the SEBI guidelines.
How do I start an alternative investment fund?
Following are the step by a step registration process of Alternative Investment Fund:
- Apply To SEBI: …
- Authorization Letter: …
- SEBI Compliances: …
- Cover Letter: …
- Final Submission of Application: …
- Scrutinizing of Application: …
- Grant of Registration Certificate:
Is private equity an alternative investment?
An alternative investment is a financial asset that does not fit into the conventional equity/income/cash categories. Private equity or venture capital, hedge funds, real property, commodities, and tangible assets are all examples of alternative investments.
Are AIF regulated by SEBI?
The board of Securities and Exchange Board of India (SEBI) has approved amendments to the regulations for alternative investment funds (AIFs) during the meeting held on Friday. The changes are meant to ease compliance for AIFs, provide investment flexibility and streamline regulatory processes.
What is Alternative Investment Fund Upsc?
Alternative Investment Funds (AIF for short) are those funds created or established in India as a privately pooled investment vehicle in order to collect funds from specific investors as per a previously defined investment policy.
What is alternative investment fund in India?
Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.
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.