Alternative Investment Fund or AIF means any fund established or
incorporated in India which is a privately pooled investment vehicle which
collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its
Types of Category
Category II AIF
Category III AIF
What are Category II AIFs?
AIFs which do not fall in Category I and III and which do not undertake
leverage or borrowing other than to meet day-to-day operational requirements
and as permitted in the SEBI (Alternative Investment Funds) Regulations.
Various types of funds such as real estate funds, private equity funds (PE
funds), funds for distressed assets, etc. are registered as Category II AIFs.