Alternative opportunities
Access avenues beyond listed stocks and bonds, such as private equity, venture capital and private credit.
Wealth · Alternative Investment Funds (AIF)
Alternative Investment Funds (AIFs) pool money from investors and invest in strategies outside regular stocks, bonds and mutual funds, such as private equity, venture capital, private credit and hedge-fund-style approaches. They are regulated by SEBI, meant for sophisticated investors, and carry higher risk and lower liquidity. Wethonic helps eligible investors understand the options.
- 01 Strategies beyond traditional asset classes
- 02 Professional fund management
- 03 Built for a long-term investment horizon
AIF at Wethonic
What you get with AIF.
Privately pooled funds in strategies such as private equity, venture capital and credit, for eligible investors. The minimum investment set by SEBI is ₹1 crore for most categories.
Professional management
AIFs are registered with SEBI and run by professional investment managers.
Diversification potential
Different strategies can behave differently from listed markets, which may help spread risk across a portfolio. They can also be harder to value and to exit.
Specialised strategies
Structured approaches that may use concentrated positions, unlisted securities or leverage, depending on the category.
Long-term orientation
Category I and II AIFs are typically closed-ended with a minimum tenure of three years, so they suit capital you can leave invested.
How it works
From first call to first investment.
- 01
Check eligibility
The minimum investment set by SEBI is ₹1 crore for most categories. We discuss whether an AIF fits your situation.
- 02
Understand the category
Category I, II and III funds follow different strategies and carry different risks, tenures and tax treatment.
- 03
Read the PPM
The Private Placement Memorandum sets out the strategy, fees, tenure, risks and exit terms. Read it in full.
- 04
Commit and track
Complete KYC and the contribution agreement. Capital may be called in stages, and you receive periodic reports from the fund.
How it works at Wethonic
AIFs are for eligible investors. If you can meet the minimum investment, ₹1 crore for most categories as set by SEBI, we help you understand the categories, compare funds and read the Private Placement Memorandum (PPM) before you commit. The fund’s investment manager, not Wethonic, runs the fund.
What sets AIFs apart
AIFs are privately pooled and regulated by SEBI under the AIF Regulations. Category I and II funds are usually closed-ended, with a minimum tenure of three years. Capital may be called in stages, and exits are limited. Some strategies hold unlisted or illiquid assets, and Category III funds may use leverage. Tax treatment varies by category and structure.
What to keep in mind
- AIFs are high-risk, and your capital can lose value.
- Plan to stay invested for the full term. An early exit may not be possible.
- The PPM sets out strategy, fees, tenure, risks and exit terms. Read it in full.
- Past performance does not indicate future results.
FAQs
Have questions? Find your answers here.
What are the AIF categories?
Category I covers funds such as venture capital, SME, social venture and infrastructure funds. Category II covers funds such as private equity and private debt funds. Category III covers funds that use diverse or complex trading strategies, which may include leverage.
What is the minimum investment?
SEBI sets a minimum of ₹1 crore per investor for most categories. Some structures have different thresholds, so check the PPM of the fund you are considering.
Can I exit anytime?
Usually not. Many AIFs are closed-ended with a fixed tenure and limited or no early redemption. Investments can be illiquid, so invest only what you can leave invested for the full term.
How are AIFs taxed?
Tax treatment varies by category and by fund structure. Ask your tax professional before you invest.
How is an AIF different from a mutual fund?
Mutual funds are open to all investors, mainly hold listed securities and publish a NAV daily. AIFs are privately pooled, meant for eligible investors with a high minimum, may hold unlisted or illiquid assets, and offer fewer exit options.
Please note: Alternative Investment Funds are privately pooled, high-risk investments, and your capital can lose value. The minimum investment set by SEBI is ₹1 crore for most categories, and AIFs are meant for eligible investors only. Investments may be illiquid, with long lock-ins and limited exit options. Past performance does not indicate future results. Read the Private Placement Memorandum and all related documents carefully before investing. Wethonic distributes AIFs and does not manage funds.
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