Profes Capital Insights

Introduction to Alternative Investment Funds (AIFs) Alternative Investment Funds (AIFs) represent a class of privately pooled investment vehicles that channel capital from sophisticated investors — both domestic and foreign — into a range of alternative asset classes beyond traditional equity and debt instruments. These funds are regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 , which provide the legal and operational framework for their registration, governance, and investment activities in India. AIFs are typically established as trusts, limited liability partnerships (LLPs), companies, or body corporates , and are managed by a fund manager or investment manager, who is registered with SEBI. These funds are not permitted to solicit retail investors and are generally aimed at high-net-worth individuals (HNIs) and institutional investors who have the financial capacity and risk appetite to invest in unconventional assets or s...