The Indian AIF industry is giving investors a wider platform for investing across asset classes and this is evident from the steady rise in asset across all categories. AIF (category III) invests in tradable securities, unlike PMS, where the minimum ticket size is Rs 25 lacs, the minimum investment under AIF is Rs 1 Cr.

This makes it suitable for Ultra HNI investors.
Investments are staggered, which means investors don’t need to put the money in one go.
The management fees is between 150 to 175 bps. (1.50% to 1.75%), which is lower than the Mutual Fund expense ratio (2.25% to 2.5%).
There is performance fees, which means fund manager charges fees, if the fund performs.
Execution and tax aspects are also in favour of AIF investors given the structure.
Not available to invest and redeem will give the cushion for Fund manager to take long term call.