Alternative Investment Fund (AIF) Disclosure
Key disclosures for the Alternative Investment Funds we distribute, under SEBI (Alternative Investment Funds) Regulations, 2012.
Rakesh Kumar Sachdev distributes units of Alternative Investment Funds (AIFs) registered with SEBI. We are a distributor only — we do not manage, sponsor or operate any AIF. The fund is managed by its SEBI-registered Investment Manager, and every AIF scheme is governed by its own Private Placement Memorandum (PPM).
Registration status
SEBI does not issue a distributor-level registration for Alternative Investment Funds. Unlike mutual fund distribution (ARN) or PMS distribution (APMI APRN), there is no separate SEBI AIF distributor registration number to display. The SEBI registration number in the format IN/AIF1, IN/AIF2 or IN/AIF3 belongs to the fund itself and is set out in that fund’s Private Placement Memorandum. Verify any AIF’s registration directly at sebi.gov.in before investing.
Key parameters
- Minimum investment
- ₹1 crore per investor
- Exception
- ₹25 lakh — employees / directors of the AIF or its Manager
- Minimum fund corpus
- ₹20 crore (₹10 crore for angel funds)
- Accredited investor
- Net worth ≥ ₹7.5 crore or annual income ≥ ₹2 crore
- Governing regulation
- SEBI (Alternative Investment Funds) Regulations, 2012
The three AIF categories
- Category I — funds investing in start-ups, early-stage ventures, SMEs, infrastructure and social ventures; areas the government or regulators consider socially or economically desirable.
- Category II — private equity funds, debt funds and funds of funds. These do not undertake leverage other than to meet day-to-day operational requirements.
- Category III — funds employing diverse or complex trading strategies, which may use leverage and derivatives, including listed and unlisted exposure. Typically the highest-risk category.
- The category of any fund we discuss with you is stated up front, and is set out in that fund’s Private Placement Memorandum.
Distribution commission and direct plans
- Every AIF scheme offers a direct plan, which carries no distribution or placement fee. You may invest through it without a distributor.
- For Category III AIFs, distribution fee is payable only on a trail basis. No upfront distribution or placement fee is charged, directly or indirectly.
- For Category I and Category II AIFs, up to one-third of the total distribution fee may be paid upfront, with the balance paid on an equal trail basis over the tenure of the fund.
- Any distribution or placement fee is disclosed to you at the time of onboarding, before you commit.
- If you approach an AIF through a SEBI-registered intermediary that charges you a fee separately, you must be onboarded through the direct plan.
- This follows the SEBI circular dated 10 April 2023 on direct plans and the trail model for distribution commission in AIFs.
Risk disclosure — illiquidity and lock-in
AIF investments are illiquid. Your capital is typically locked in for the tenure of the fund, which commonly runs to several years, and there is no assurance of an early exit. Units are not listed and there is generally no active secondary market, so you should treat the committed amount as money you will not be able to access until the fund permits redemption or winds up. AIFs may also draw down your commitment in stages via capital calls. Returns are neither guaranteed nor assured, capital is at risk including the risk of total loss, and Category III strategies may use leverage and derivatives, which can magnify losses. Past performance of a fund or its Manager is not an indicator of future results. Please read the Private Placement Memorandum of the respective AIF carefully before investing.
Last updated: July 2026
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