What is an alternative investment fund types?

What is Alternative Investment Fund?

An alternative investment fund (AIF) is a collective investment in so-called ‘non-standard’ tangible and non-tangible assets whereby investors’ capital is pooled, and the returns are also pooled.

What are the 4 main categories of alternative investments?

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 Category 3 Alternative Investment Fund?

Category III : Alternative Investment Funds such as hedge funds or funds which trade with a view to make short term returns or such other funds which are open ended and for which no specific incentives or concessions are given by the government or any other Regulator.

What is Category 2 Alternative Investment Fund?

Category II: Funds investing in various equity securities and debt securities come under this category. All those funds that are not described under category I and III by SEBI, fall under category II. No incentive or concession is given by the government on investment in these funds.

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What is the best alternative investment?

Best alternative investments

  • Real estate.
  • Crowdfunding.
  • Peer-to-peer lending.
  • Commodities.
  • Hedge fund investing.
  • Cryptocurrency.
  • Art.

How do alternative investments work?

An alternative investment is a financial asset that doesn’t fall into conventional asset categories, like stocks, bonds and cash. Alternative investments include private equity, venture capital, hedge funds, managed futures and collectables like art and antiques.

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 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.

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.

Can AIFs be listed?

The latest managed equity portfolio product in the market are the long-only listed equity Category III Alternative Investment Funds (AIFs). AIFs are managed funds regulated by the Securities and Exchange Board of India (Sebi) and Category III AIF is the only one that can invest in listed securities, including equity.

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What is the difference between AIF and 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.

What is not included in alternate investment fund?

Meaning Of Alternate Investment Fund

It does not include funds covered under the SEBI (Collective Investment Schemes) Regulations, 1999, SEBI (Mutual Funds) Regulations, 1996 or any other regulations of SEBI (Securities and Exchange Board of India) regulating fund management activities.

What are the three categories of AIF?

Currently, the AIF Regulations provide for three categories of funds: – Category I Alternative Investment Fund; – Category II Alternative Investment Fund; and – Category III Alternative Investment Fund.

What is the difference between mutual fund and Alternative Investment Fund?

Though mutual funds are also pass-through vehicles, you pay tax only when you redeem them units. Category III AIFs are not considered pass-through vehicles. As a result, the fund has to pay tax when the AIF realises its gains or gets other income such as interest.

Which 2 services are fund based ones?

Important fund based services include:

  • Leasing.
  • Hire purchase.
  • Factoring.
  • Forfeiting.
  • Mutual funds.
  • Bill discounting.
  • Credit Financing.
  • Housing Finance.