Alternate Investment Funds (AIF) space is new and evolving. The minimum investment in any AIF is ₹ 1 Cr

Alternate Investment Funds in India are of 3 categories,

• CAT 1 – which invest at a venture level

• CAT 2 – which invest as private equity

• CAT 3 – which invest in the listed public equity

In practise a lot of the asset management companies use the AIF platform to manage conventional long only strategies in equity to combine the operational ease of MFs with the customization of any PMS. The Minimum investment in any AIF is 1cr.

The space is new and evolving. Some of the best known AIFs in India in long only equities so far are Sunil Singhania ( Abakkus Asset Manager), Vikas Khemani ( Carnelian Capital ), Kenith Andrade (Old Bridge Capital), ICICI Pru CompAct AIF, Nippon India Alternate Investment Funds, Edelweiss Asset Management, Avendus Asset Management. In long only AIFs the taxation is done at the fund level as per capital gains slabs and returns are shared net of all expenses and taxes to the investor. AIFs provide a lot more flexibility to fund managers in terms of their investment styles and investment calls.