A Distinct Approach to Capital Investment: Alternative Investment Funds

Alternative Investment Funds were recognized as an investment vehicle by introduction of the SEBI (AIF) Regulations, 2012 and provided a sophisticated investment tool for the High Net-worth Individuals (HNIs) & Investors with high risk appetite.

AIFs have come a long way since to become one of the most favoured investment tools in the country. As per latest available figures by SEBI, the current investments by AIFs stand at a staggering INR 1.4 Lakhs Crore. At the same time, the number of AIFs is going almost at the rate of 50% year-on-year basis.

So, why are AIFs drawing such mind boggling figures? Is the ease of their setup or the tax benefit structuring? Why have fund managers and Private Equity funds constantly looking for establishing more AIFs?

We have a look at all those questions and many more. While giving an insight into the legal & regulatory framework concerning AIFs and explaining how the AIF structure is the way to go for Capital Investment – both in terms of the investors and also, on part of the Start-ups and other investee companies.