Most people with serious wealth have heard of AIFs. Very few actually understand what they are or whether they belong in their portfolio.
If you’ve ever wondered what happens beyond mutual funds and PMS — this is that conversation.
WHAT IS AN AIF
An Alternative Investment Fund is a professionally managed fund that invests in opportunities outside the regular stock market. Not listed equities. Not mutual funds. Things like private credit, infrastructure lending, real estate debt, and unlisted companies growing fast.
In India, AIFs are regulated by SEBI and available only to sophisticated investors — the minimum ticket is ₹1 crore. That's not arbitrary. These are complex, illiquid products. The minimum exists because the risks are real and the investor needs to be able to absorb them.
What you get in return is access to investment opportunities that simply aren’t available through any other route — and return potential that can be meaningfully different from what public markets offer.
THE TWO TYPES WE FOCUS ON
AIFs come in three categories. We'll spare you the regulatory definitions and focus on what's actually relevant.
These funds lend capital to businesses that need it — typically at better terms than what banks offer but with more structure than pure equity. You're on the lending side of that transaction, earning structured returns over a defined tenure. Five to seven years typically.
For someone who has built wealth through a business or a career — this mental model is familiar. You understand lending. You understand what it means to put capital to work at a structured rate for a defined period. The returns aren't linked to whether the Sensex goes up or down on a given Tuesday. That's exactly the point.
This is the most sensible entry point for someone exploring AIFs for the first time. Defined tenure, structured payouts, lower correlation to daily market movements.
WHO IS THIS FOR
You have significant capital — across mutual funds, possibly some direct equity or a PMS — and you want a portion of it working in something genuinely different. Not just a different fund. A different asset class entirely.
You understand that having everything tied to public markets means you're entirely at the mercy of that market. AIFs give you genuine diversification — not just across sectors or geographies, but across asset classes.
And you’re comfortable with the idea that this money is committed for a defined period. If you need that ₹1 crore accessible in two years, this isn’t the right product. If you have ₹3 crore or more in investable assets and can comfortably set aside a portion for five to ten years — this conversation is worth having.
WHAT WE DO HERE
We have access to a wide range of AIF providers across private credit, infrastructure debt, and private equity. We don't lead with a product and work backwards.
We start with your situation — your existing portfolio, your liquidity needs, your timeline, and what you're actually trying to achieve with this allocation. Then we identify the fund that fits that picture. There are meaningful differences between providers, strategies, and risk profiles within the AIF universe. Getting that match right matters more than moving quickly.
If you’re at the stage of curiosity — this is a good stage to start the conversation.
THE ILLIQUIDITY QUESTION
The most common hesitation is the lock-in. Five to ten years feels like a long time.
Here's how to think about it. If you have ₹3 crore in investable assets and you put ₹1 crore into an AIF — you still have ₹2 crore in liquid assets. The question isn't whether you can lock money away. It's whether you can lock this specific amount away without it affecting your life or your liquidity needs.
If the answer is yes — the illiquidity premium you earn for that commitment is a meaningful part of why the returns are what they are.
WHAT THIS IS NOT
If you've read this far and you're thinking "I should probably understand this better" — that's the right instinct.
We're happy to walk you through what AIFs are, which ones we're currently evaluating, and
whether any of them make sense for your specific situation.
No commitment. Just a conversation.
