AIF (Alternative Investment Fund)
Private equity, private credit and long-short strategies for sophisticated investors, from ₹1 crore.
Overview
Alternative Investment Funds (AIFs) are privately pooled vehicles registered with SEBI that invest outside the traditional listed-equity and debt space — private equity, private credit, venture capital, infrastructure and long-short strategies among them. They are built for sophisticated investors who already hold a complete core portfolio and are allocating surplus capital.
We distribute AIF units as a distributor. We do not manage, sponsor or operate any fund — that is done by the fund’s SEBI-registered Investment Manager. Our role is to help you judge whether an AIF belongs in your portfolio at all, compare funds and managers honestly, and make sure you understand the lock-in before you commit.
What’s included
Category I
Start-ups, early-stage ventures, SMEs, infrastructure and social ventures — areas regulators consider economically desirable.
Category II
Private equity, private credit and funds of funds. No leverage beyond day-to-day operational needs.
Category III
Diverse or complex trading strategies that may use leverage and derivatives. Typically the highest risk of the three.
Independent selection
We compare managers on strategy, track record, costs and terms — and will tell you when an AIF is the wrong answer.
Who it’s for
- Investors with a completed core portfolio and genuine surplus capital
- Those seeking exposure beyond listed equity and debt
- People comfortable locking capital away for several years
- Investors who understand capital can be permanently lost
Our process
- 1
Test suitability first
We confirm an AIF genuinely fits your net worth, liquidity needs and risk appetite before discussing any specific fund.
- 2
Understand the lock-in
We walk you through the tenure, capital-call schedule and exit terms, so illiquidity is a decision and not a surprise.
- 3
Compare and shortlist
We assess category, strategy, manager pedigree, fee structure and the Private Placement Memorandum in plain language.
- 4
Onboard and review
We coordinate documentation and drawdowns, then track the fund against its mandate through its life.
Frequently asked questions
₹1 crore per investor, mandated by SEBI and uniform across all three categories. The only exception is for employees or directors of the AIF or its Manager, who may invest from ₹25 lakh. The minimum cannot be waived.
Regulatory disclosure
Rakesh Kumar Sachdev distributes units of SEBI-registered Alternative Investment Funds. We do not manage, sponsor or operate any AIF; the fund is managed by its SEBI-registered Investment Manager under SEBI (Alternative Investment Funds) Regulations, 2012.
- Minimum investment
- ₹1 crore per investor
- Categories distributed
- Category I, II and III
- Governing regulation
- SEBI (AIF) Regulations, 2012
- Distributor registration
- No SEBI AIF distributor registration exists
Fee structure and direct plans
- Every AIF scheme offers a direct plan carrying no distribution or placement fee, which you may invest through without a distributor.
- Category III AIFs pay distribution fee on a trail basis only — no upfront distribution or placement fee, directly or indirectly.
- Category I and II AIFs may pay up to one-third of the total distribution fee upfront, with the balance on an equal trail basis over the fund’s tenure.
- Any distribution or placement fee is disclosed to you at the time of onboarding, before you commit. Fund-level management and performance fees are set out in the Private Placement Memorandum.
- SEBI does not issue a distributor-level registration number for AIF. Any SEBI number in the IN/AIF1, IN/AIF2 or IN/AIF3 format belongs to the fund itself and appears in that fund’s PPM.
AIF investments are illiquid and your capital is typically locked in for the tenure of the fund, often several years, with no assurance of early exit. Units are unlisted with no active secondary market, and commitments may be drawn down in stages via capital calls. Returns are neither guaranteed nor assured and capital is at risk, including the risk of total loss; 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.
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