Alternate Investment Funds (AIFs)

21 Aug 2023

Context:

The private credit alternative investment fund (AIF) space is witnessing heightened action this financial year (2023-24), with the change in taxation of debt mutual funds (MFs).

About Alternative Investment Fund (AIF): 

  • It refers to the collection of pooled investment funds that infuse in hedge funds, private equity, venture capital, and other investment types. 
  • They are defined under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations 2 (1) (b), 2012 set up by the SEBI.
  • It can be established through a company or a Limited Liability Partnership (LLP).

Benefits of Investing in AIFs:

  • High Return Potential: AIFs generally have a higher return potential than other investment options. 
  • Low Volatility: AIFs are not directly related to stock markets. Volatility in these funds is less, particularly when compared with traditional equity investments. 
  • Diversification: These funds allow much-needed diversification in an investment portfolio. They act as a cushion at the time of financial crisis or market volatility.

News Source: Business Standard

Archive Calendar

Mon Tue Wed Thu Fri Sat Sun
1234567
891011121314
15161718192021
22232425262728
2930  

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

Aiming for UPSC?

Download Our App

      
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.