How do I set up an alternative investment fund?
The Applicant for grant of registration as an Alternative Investment Fund under SEBI (Alternative Investment Funds) Regulations, 2012 should make an application to SEBI in Form A as provided in the Regulations along with all the necessary documents.
What qualifies as an alternative investment fund?
Alternative investments are supplemental strategies to traditional long-only positions in stocks, bonds, and cash. Alternative investments include investments in five main categories: hedge funds, private capital, natural resources, real estate, and infrastructure.
What is the minimum investment in AIF?
What is the minimum investment amount required to invest in an AIF? A. All the categories of AIFs in India except angel fund require a minimum investment of Rs. 1 crore.
What are the 4 main categories of alternative investments?
The most common types of alternative investments include real estate, collectibles, commodities, private equity, and derivatives.
How do I get an AIF Licence?
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:
Who can invest in alternative investment funds?
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. 2.
How much of my portfolio should be in alternatives?
A new study carried out by Dexia Asset Management shows the benefits of allocating 15% to 20% of a portfolio to alternative funds. Finding a good balance between risk and return is the first aim of any investment strategy.
Are alternative investments worth it?
The Bottom Line
Proponents of non-traditional investments maintain that the average investor now has access to assets not correlated to the stock market, offering diversification and potentially higher returns when compared to mutual funds, stocks, and bonds.
What are the risks associated with an alternative investment fund?
What are the Risks of Alternative Investment Funds?
- Liquidity (or a lack thereof) One of the biggest risks associated with alternative investments is liquidity. …
- Leveraged portfolios. Often alternative investments funds lever up their holdings to seek higher returns. …
- Valuation risk. …
- Market risk. …
- High fees. …
- Lack of regulation.
Are mutual funds alternative investments?
What Are Alternative Funds? The term “alternative funds” refers to mutual funds, hedge funds, or ETFs that invest in non-conventional investment securities. These may be broadly categorized as securities other than stocks, bonds, and cash.
Who regulates AIF?
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.
Which is better AIF or PMS?
This is the reason large and wealthy investors prefer them. However, PMS and AIF there are many points of difference between Portfolio Management Services and Alternative Investment Funds like AIF offers a wide bouquet of investments while on the other hand PMS is majorly focused on listed securities.
Is Cryptocurrency an alternative investment?
Although cryptocurrencies could be seen as a high-risk investment because it is an alternative investment, like other alternative investments, they also offer a higher return. They make a great option for a long-term investment due to the fact that they are likely to remain strong and pull through any financial crisis.
Why are alternative investments attractive?
Alternative investments typically have a low correlation to more traditional asset classes, as discussed. Alternative assets therefore provide an opportunity for portfolio diversification, reducing overall risk exposure across investments. Many alternative assets also provide a hedge against inflation.
Are ETFs alternative investments?
In short, ETFs have become everyman’s gateway to alternative investments. Today, some investors are using these ETFs simply to participate in the strong markets for commodities.