INTRODUCTION

Alternative Investment Fund is a privately pooled investment vehicle that collects funds from investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

Among other things, AIF helps in reducing volatility that is commonly associated with traditional investments as their performances are not dependent on the ups and downs of a stock market, they help in diversification in terms of markets strategies and investment styles, etc.

AIF does not include funds covered under the SEBI (Mutual Funds) Regulations, 1996, SEBI (Collective Investment Schemes) Regulations, 1999, or any other regulations of the Board to regulate fund management activities. Further, certain exemptions from registration are provided under the AIF Regulations to family trusts set up for the benefit of relatives, employee welfare trusts or gratuity trusts set up for the benefit of employees, holding companies, etc.