Investors
Eligible investors contribute capital to the AIF in accordance with the applicable fund terms.
ALTERNATIVE INVESTMENT FUNDS
Understand AIFs.
Understand AIFs.
Explore Beyond Traditional Structures.
Alternative Investment Funds (AIFs) are privately pooled investment vehicles that follow a defined investment policy. Explore how AIF categories differ, how the structure works, what to review and how opportunities can be accessed through Prospera FinTech.
AIF opportunities are facilitated through relevant providers and fund managers. Prospera FinTech is not itself an AIF manager.
Private Pool
Defined investment policy
Investors participate through the fund structure, while the appointed manager follows the fund's stated strategy.
Category I
Targeted areas
Category II
Private markets & more
Category III
Complex strategies
START HERE
What exactly is an Alternative Investment Fund?
AIFs bring investors together through a privately pooled structure built around a defined investment policy
The AIF
The pooled investment vehicle operates according to its stated investment policy and fund documents.
Underlying investments
Capital is deployed according to the strategy and permitted investment framework of the AIF.
The AIF, its manager, strategy, fund documents and investment terms are distinct from Prospera FinTech. Prospera FinTech facilitates access to AIF opportunities through relevant providers.
THREE AIF CATEGORIES
Same framework. Different investment characteristics.
AIFs are broadly classified into Category I, Category II and Category III. The exact investment strategy varies from one AIF scheme to another.
I
CATEGORY I AIF
Generally focused on areas considered socially or economically desirable
Category I AIFs generally invest in areas considered socially or economically desirable under the applicable regulations
Defined mandate
Fund structure
Strategy-specific risks
II
CATEGORY II AIF
A broad category covering private equity, debt and other strategies
Category II AIFs cover a broad range of private equity, debt and other strategies that do not fall under Category I or Category III
Private markets
Debt & equity strategies
Longer horizons may apply
III
CATEGORY III AIF
May employ diverse or complex trading strategies
Category III AIFs generally employ diverse or complex trading strategies and may invest in listed or other permitted securities
Complex strategies
Listed or permitted securities
Strategy-specific risks
The category provides a regulatory classification; it does not by itself describe the exact strategy, portfolio or risk profile of a particular AIF.
UNDERSTAND THE CHARACTERISTICS
AIFs can differ materially from conventional investment products
The structure and strategy of each AIF can create different levels of complexity, liquidity, concentration and investment horizon
Strategy
Investment approaches vary by category, scheme and manager. Read the stated strategy rather than relying on the category alone.
Liquidity
AIFs can have limited liquidity, lock-ins, defined exit windows or other conditions depending on the fund structure.
Investment horizon
Some strategies may require capital to remain invested for a longer period than conventional market-linked products.
Concentration
Certain strategies can have meaningful exposure to particular sectors, assets, issuers or investment themes.
Costs & fees
Fees and expenses depend on the AIF, manager and arrangement. The applicable fee structure should be reviewed carefully.
Risk
Risks can include market, liquidity, concentration, credit, leverage and strategy-specific risks.
SEE THE STRUCTURAL DIFFERENCE
AIF vs Mutual Funds vs PMS
These are different structures with different ways of pooling, managing and holding investments.
Structure
How it works
Key distinction
AIF
Privately pooled vehicle
Investors participate through the fund structure
under its defined investment policy.
Generally designed for sophisticated investors and
may involve specialised strategies, different liquidity
structures and higher minimum investment requirements.
Mutual Fund
Pooled investment vehicle
Multiple investors contribute to a scheme that invests
according to its stated objective.
Available across a broad range of investors and strategies,
with scheme-specific liquidity and risk characteristics.
PMS
Individual portfolio
A portfolio manager manages or administers an individual
client's portfolio under an agreed strategy.
Portfolio structure, ownership, mandate, fees and
decision-making differ from an AIF.
PROSPERA FINTECH'S ROLE
Where Prospera FinTech fits in
Prospera FinTech facilitates AIF opportunities through relevant providers and fund managers. The AIF, its investment strategy, fund structure and management remain with the respective provider or AIF manager.
Prospera FinTech
Facilitates AIF opportunities
Provider / AIF Manager
Operates the fund and its strategy
AIF / Fund
Invests according to its stated policy
Prospera FinTech is not itself an AIF manager. Fund-level decisions, management, documentation, fees and performance remain with the respective AIF and its appointed manager or provider.
FROM EXPLORATION TO ACCESS
How the AIF process works
The route can vary by provider and fund. The broad process typically moves through these stages.
1
Explore
Learn about available AIF opportunities, their category, strategy and broad structure.
2
Review
Review the fund's documents, strategy, risks, fees, tenure, liquidity and applicable terms.
3
Complete the provider process
Where you choose to proceed, complete the applicable eligibility, documentation and investment process.
4
Fund-level relationship
Ongoing fund administration, investment management, reporting and fund-level matters are handled through the respective provider or AIF manager.
EXPLORE AIF OPPORTUNITIES
Get in Touch
Want to understand an available AIF opportunity?
Connect with Prospera FinTech to explore the AIF opportunities being facilitated through relevant providers
BEFORE YOU PROCEED
Read the structure, not just the headline
AIFs can be complex. The fund documents and provider terms are important sources of information before any investment decision.
Investment strategy
Understand the strategy, permitted investments, portfolio construction and stated investment approach.
Risk factors
Review market, liquidity, concentration, credit, leverage and strategy-specific risks.
Tenure & exit
Check the fund tenure, lock-in, redemption provisions, exit windows and other applicable conditions.
Fees & expenses
Understand management fees, performance-linked fees, fund expenses and other applicable charges.
Eligibility & minimum investment
Confirm the applicable investor eligibility criteria and minimum investment requirement at the time of investment.
Fund documents
Read the relevant offer documents, disclosures and other provider-issued information before proceeding.
AIFs can carry significant investment risks. Regulatory registration or oversight does not mean that investment returns are guaranteed.
AIF FAQS
Questions people usually ask
Find clear answers to common questions about AIF categories, structure, investments, risks and how Prospera FinTech facilitates access to AIF opportunities
What is an Alternative Investment Fund (AIF)?
An Alternative Investment Fund (AIF) is a privately pooled investment vehicle established or incorporated in India for collecting funds from investors for investment according to a defined investment policy.
What are the categories of AIF?
AIFs are broadly classified into three categories. Category I generally invests in areas considered socially or economically desirable under the regulations. Category II covers a broad range of private equity, debt and other strategies that do not fall under Category I or III. Category III generally employs diverse or complex trading strategies and may invest in listed or other permitted securities. The exact investment strategy varies from one AIF scheme to another.
Who can invest in an AIF?
AIFs are generally intended for sophisticated investors who understand the risks associated with alternative investments and meet the applicable eligibility and minimum investment requirements. AIFs may involve greater complexity, concentration, illiquidity or longer investment horizons than conventional investment products.
What is the minimum investment amount for an AIF?
The applicable minimum investment requirement is prescribed under the prevailing AIF regulations and may vary for specific categories or investor circumstances. The current requirement should always be confirmed before making an investment.
How is an AIF different from PMS?
PMS generally manages a portfolio for an individual client under an agreed mandate, whereas an AIF is a privately pooled investment vehicle in which investors participate through the fund structure. The two have different structures, investment approaches, liquidity considerations, fee arrangements and regulatory requirements.
How is an AIF different from a mutual fund?
Mutual funds are pooled investment vehicles available across a broad range of investors and strategies, whereas AIFs are privately pooled vehicles generally designed for sophisticated investors and may pursue more specialised or alternative investment strategies. AIFs can involve higher complexity, different liquidity structures and higher minimum investment requirements.
Are AIF investments risky?
AIFs can carry significant investment risks, depending on the category, strategy and underlying investments. Risks may include market risk, liquidity risk, concentration risk, credit risk, leverage risk and strategy-specific risks. Investors should understand the scheme's investment strategy, risks, fees, tenure and exit provisions before investing.
Does SEBI guarantee the returns of AIF investments?
No. Regulatory registration or oversight does not mean that investment returns are guaranteed. AIF investments remain subject to the risks associated with their underlying strategies and investments.
ALTERNATIVE INVESTMENT FUNDS
Explore AIF opportunities through Prospera FinTech
Connect with Prospera FinTech to understand available AIF opportunities facilitated through relevant providers and fund managers
Get in Touch
