Gold, Real Assets and Alternatives · Advanced
Alternative Investment Funds (AIF)
Category I, II and III AIFs, who can invest, fee structures, lock-ins and the risks of private pooled funds.
What is inside
5 short lessons. Each ends with a quiz, so you know what you have learnt.
The essentials
- What an AIF is
- The three categories
- How an AIF works
- Fees, tax and structure
- Risks and diligence
Key ideas you will take away
- AIFs are privately pooled and SEBI-regulated.
- Minimum ₹1 crore.
- Cat I: start-ups, infrastructure.
- Cat II: private equity and debt.
- Commitment is paid in drawdowns.
- Tenure often runs several years.
Try a question
Q1. Which statement best describes “Alternative Investment Fund”?
- An AIF is a privately pooled investment vehicle regulated by SEBI, collecting money from sophisticated investors to invest under a defined strategy.
- SEBI sets the minimum investment in an AIF at ₹1 crore per investor, with exceptions for certain managers’ employees.
- Carried interest, or carry, is the manager’s share of profits above the hurdle rate, often around 20%.
- The tenure is the life of the fund, during which money is locked in. SEBI requires a minimum tenure of three years for Category I and II funds.
Show the answer
A. Alternative Investment Fund: An AIF is a privately pooled investment vehicle regulated by SEBI, collecting money from sophisticated investors to invest under a defined strategy.
Q2. Which statement best describes “Category I AIF”?
- SEBI sets the minimum investment in an AIF at ₹1 crore per investor, with exceptions for certain managers’ employees.
- A distribution is a payment returned to investors when the fund sells an investment or earns income.
- An AIF is a privately pooled investment vehicle regulated by SEBI, collecting money from sophisticated investors to invest under a defined strategy.
- Category I AIFs invest in start-ups, early-stage ventures, social ventures, SMEs and infrastructure that the government wants to encourage.
Show the answer
D. Category I AIF: Category I AIFs invest in start-ups, early-stage ventures, social ventures, SMEs and infrastructure that the government wants to encourage.
Frequently asked questions
Is the Alternative Investment Funds (AIF) course free?
Yes. Lessons, quizzes and practice are free. Sign in once with your mobile number or Google to start.
Who is the Alternative Investment Funds (AIF) course for?
It is a advanced-level course with 5 short lessons, written in plain language for beginners and for people who advise others on money.
Can I learn this in Hindi or Gujarati?
The app screens switch between English, Hindi and Gujarati at any time, and many quiz questions have translations. Lesson text is in English for now.
Do I get a certificate?
Yes. Pass the course exams to earn a certificate that anyone can verify online.
Is this investment advice?
No. It is education only. Speak to a qualified adviser before you act on your own money.
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UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.