Alternative Presented by

• KRISHNA SHARMA 19F222

• NIRAV KHAKHARIA 19F229
Investment Funds • R. MRITHUNJAY 19F238
 Any fund established or incorporated in India which has features-
* Privately pooled investment fund which collect fund from eligible
investors.
* Investor and be Indian or Foreign.
* Invests in accordance with a defined investment policies for the benefit
of its investors.

What is
Alternative AIFs are regulated under SEBI Alternative Investment Funds regulation,
2012 to regulate pooled investment funds such as real estate and hedge
Investment funds.

Funds(AIFs)
So, we can say that an AIF is a kind of fund, different than conventional
investment such as stocks, bonds, cash, bank deposits etc…
 They are non conventional funds.

High Minimum Investment required.

More Risky than conventional investment

products.
Characteristics
of AIFs Less liquid.

High risk – High returns.

They can act as the hedge to

inflation(investment in Gold, oil, real states).
 Debt Funds – Primarily
Hedge Funds – AIFs which
Make investments in debt
invest in diverse or complex
or debt securities of listed
trading strategies having
or unlisted investee
high risk involved.
companies.

Different AIFs Venture Capital Funds – AIFs

SME Funds – AIFS investing
in unlisted securities of
investee company which are
present in investing in unlisted
securities of start-ups.
SMEs.
• Sponsors – AIFs including the
Market promoters of the company.

Incubators – Hardcore
technocrat working with
entrepreneur to develop
business ideas which leads
to companies growth and
funding.
• Category I – Invest in start ups, early stage
ventures, social ventures, SMEs, Infrastructure
or other economically desirable sectors.
• Category II – Funds such as private equity or
debt funds for which no specific concessions are
Categories of
given by any regulators. AIF
• Category III – Employs diverse trading strategies
and may employ leverage including through
investment in listed or unlisted derivatives.
 • May raise fund from any investor
• Shall have a corpus of at least ₹25Cr.
• Cannot accept investment less than ₹1Cr.
Exceptions – in case of employees, director the
minimum investment will be ₹25L.
Regulations • Manager or sponsor shall have a continuing
interest in AIF
for AIFs • Manager or sponsor shall disclose their
investment
• No scheme shall have more than 1000 investors
• Shall not solicit or collect funds except by the
way of private placement
 Angel investor- meaning and criteria

Registration of an angel fund

Angel Funds- Investment in an angel fund

Category 1
AIF Schemes

Listing
Foreign venture capital investors

• Meaning
• Investment conditions
• Maintenance of books and records
 Exemptions on capital
gain tax for transfer of
specified capital
Streamlining KYC
assets for AIF’s
norms for foreign
situated in
Conclusion International
Financial Service
portfolio investors

Highlights of Centre

Budget 2019-
20 Tax exemptions under
Income tax Act,1956
AIF Investments surge
79% in March quarter
for Category 2 AIF’s
THANK YOU