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Alternative Investments Funds (AIFs)
Context:
Investments by alternative investment funds (AIFs) surpassed Rs 4 trillion by March 2024
About Alternative Investment Funds (AIFs)
- In India, AIFs are defined in Regulation 2(1) (b) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
- It refers to a fund established or incorporated in India as a privately pooled investment vehicle.
- It collects funds from sophisticated investors (Indian or foreign), for investing it in accordance with a defined investment policy for the benefit of its investors.
- It is a special investment category different from conventional investment.
- AIFs can be formed as a company, Limited Liability Partnership (LLP), trust, etc. .
- Generally, institutions and High Net-worth Individuals (HNIs) invest in AIFs as substantial investments are required.
- They can be formed as a company, Limited Liability Partnership (LLP), trust, etc.
