Invest in Alternative Investment Funds with Prakash72
Alternative Investment Funds are defined as privately pooled investment funds. They are categorized by SEBI as Category I AIF, Category II AIF, and Category III AIF. Assets under management can include start-ups, SME funds, infrastructure funds, private equity funds, or even hedge funds that may be trading in listed or unlisted derivatives depending on the type of fund.
Best AIF Plans with Prakash72
Features and Benefits of Alternative Investment Funds
As the name suggests Alternative Investment Funds in India are non-traditional investments. This means the assets under such funds are not correlated to the stock market. These funds are primarily for high-net-worth investors looking for diversification and better potential returns while absorbing the accompanying risk.
Some of the benefits and features of Alternative Investment Funds are:
Diversification is one of the key features of these funds. They have considerable freedom to decide where to invest unlike most funds which are regulated by SEBI.
Non-traditional investment options are available to these funds which are not generally open to all investors.
Potential returns are a factor considering the type of non-traditional assets these funds invest in.
The minimum investment amount is INR 1 Crore depending on the type of AIF.
Types of Alternative Investment Funds
Alternative Investment Funds in India are categorized into 3 types are per SEBI rules
Category I are funds with strategies to invest in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable.These invest in Startups, SME’s, Social ventures, Infrastructure funds, Angel funds, or Venture Capital Funds
Venture Capital Fund
SME Funds
Social Venture Funds
Infrastructure Funds
Category II are funds which cannot be categorized as Category I AIFs or Category III AIFs. These funds do not undertake leverage or borrowing other than to meet day-to-day operational requirements and as permitted in the Regulations. Private Equity debt funds that invest in real estate funds, funds for distressed assets, funds of funds, etc.
Real Estate Funds
Private Equity Funds
Funds for Distressed Assets
Category III are type of fund that invests in Hedge funds or funds which trade with the purpose of making short-term returns and can employ complex and diverse trading strategies, like using arbitrage, derivatives trading, and open-ended funds.
Hedge Funds
Private Investments in Public Equity
Aspects of Alternative Investment Funds
How it works
Alternative Investment Funds raise money to form an investment fund pool that invests in non-traditional assets classes. These are asset classes that investors may not have direct access through regular methods like Mutual Funds or Debt. Money can be raised from any investor of Indian, foreign, or non-resident origin for such funds.
Who should invest
These types of funds are primarily aimed at High-Net-worth individuals who are already accustomed and well versed with the investing world. While the potential for returns these funds offer is high, so are the risks.
So, Indian residents, Non-Residents (NRI’s), and Foreign Nationals can invest in Alternative Investment Funds.
Investors who are willing to meet the below criteria should invest in Alternative Investment Funds:
- Have a large amount to invest in one instrument
- Ability to withstand the risk
- Are acceptable with lock-in periods
- Are acceptable with lower regulatory control/ interventions
Taxability on Alternative Investment Funds
Alternative Investment Funds are taxed according to their category.
Category 1 and 2 AIFs are accorded pass-through status. This means that the income on the fund is not taxed, only the income or profit booked by the investor is taxed. The tax is as per the income slab of the investor. Capital gains the fund makes on the stocks are taxed depending on the holding period that is short term or long term.
Category 3 AIFs are not granted pass-through status. The income generated by such funds is taxed as high as 42.7% depending on various factors of the gains received. Factors can include, dividend, nature of gain, short term or long term, business income among others.
9,210
Partners in 769 cities across India
57,789
Customers spread over 3,000 pincodes
47,26,522
Transactions Executed
Rs. 6,349
Crore- Transaction Value
Testimonials
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Shashi
Insurance Advisor based at Faridabad
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Evangelist, Thinker, Consultant Formerly Managing Director, Miele India Prakash72 has changed the way I have been investing my money. They have educated me and facilitated investments into a totally new investment class for me—Mutual Funds. Having interacted with their able team, I have grown in my conviction about the merits of investing in MF’s and have also benefited adequately over a period of time. Happy to recommend them to all those who are looking for opportunities and avenues to invest their money and see it grow.
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Insurance Advisor based at Faridabad
I have a habit of saving money from the time I got my job. I was keeping this money either in my savings account or through recurring deposits. I heard about mutual funds but was not confident how to start. When I met a Prakash72 advisor, I was amazed to know that I could invest through a mobile app and track the portfolio.
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I’m a 62-year-old Financial Advisor, working in the Mutual Funds Industry for the past 20 years. In 2017, I started working from home. With a huge customer base, I had to commute all day for collecting the clients’ documents. At the end of each day I thought, “Till when will I continue working like this!” He was aware of Mutual Funds but was not sure how to get started. After coming in touch with Prakash72.com, he carefully evaluated the option of dealing with Prakash72.com versus directly with mutual funds and clearly saw the benefit of being part of a larger platform and the great leverage of technology that Prakash72.com offered. He then spent some time trying to understand the basics of mutual fund investing and also obtained an AMFI Registration Number (ARN). Since then, he has been able to help his customers diversify into mutual funds in a much simpler manner, leveraging the state-of-the-art technology. He is clear that he is into this for the long term.
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Amit Malhotra
From traveling in buses to Jaipur and haggling with Mutual Funds companies for collecting clients’ statements to sitting in the comfort of my home and managing all the transactions with a few clicks on my phone, I have come a long way — all thanks to Prakash72. There was a time when I was forced to stop the SIPs of my hard-earned customers as it was impossible to service them given the paperwork that required a lot of commuting and expenses. For every customer’s KYC, I had to go to a cybercafé, pay Rs 10 and get a printout. Then the choice of funds was a complex issue. To make it worse, it was a herculean task to track my brokerage as it was coming from various places. Prakash72 came as a one-stop solution for all these problems and made investing a cakewalk for me and my customers.
Read MoreFrequently Asked Questions (FAQs):
1. How Does an Alternative Investment Fund (AIF) Work?
Alternative Investment Funds are a privately pooled investment vehicles that collect funds from sophisticated investors, whether Indian or foreign, investing in non-traditional asset classes such as angel funds, private equity, hedge funds, venture capital, managed futures, etc.
2. How do I Start Investing in an Alternative Investment Fund?
Approaching your financial distributor is the best way to start investing in an Alternative Investment Fund.
3. Who can Invest in an Alternative Investment Fund?
Indian residents, non-residents (NRI’s), and foreign nationals can invest in Alternative Investment Funds.
4. What is the Enrollment Charge to be Paid for an Alternative Investment Fund?
The enrollment charge to be paid for an Alternative fund depends on its type. All three categories have an application fee of Rs. 1 lakh. Registration fees are Rs. 5 lakh, Rs. 10 lakhs, and Rs.15 lakh for Category I, II, III respectively.
5. What is the Upper Limit for Investors Under Alternative Investment Fund (AIF)?
There is no upper limit for investors under Alternative Investment Funds. Minimum limits are Rs. 1 Cr depending on the type of the fund. Also, no fund must have more than 1,000 investors.