What is Alternative Investment Fund Upsc?

What is the meaning of alternative investments?

An alternative investment is a financial asset that does not fall into one of the conventional investment categories. … Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts.

What is Category 3 Alternative Investment Fund?

Category III : Alternative Investment Funds such as hedge funds or funds which trade with a view to make short term returns or such other funds which are open ended and for which no specific incentives or concessions are given by the government or any other Regulator.

What is Alternative Investment Fund Category 1?

Category I AIFs are funds with strategies to invest in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable.

What are 4 types of investments?

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

  • Growth investments. …
  • Shares. …
  • Property. …
  • Defensive investments. …
  • Cash. …
  • Fixed interest.

Are alternative investments safe?

Risks of Alternative Investments

Alternative investments are more complex than traditional investment vehicles. They often have higher fees associated with them. As with any investment, the potential for a higher return means higher risk.

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Is Bitcoin an alternative investment?

Although cryptocurrencies could be seen as a high-risk investment because it is an alternative investment, like other alternative investments, they also offer a higher return. They make a great option for a long-term investment due to the fact that they are likely to remain strong and pull through any financial crisis.

Is Cryptocurrency an alternative investment?

Over the past decade, alternative investments have become increasingly popular with investors looking to diversify their portfolios. In more recent years, cryptocurrencies have become a popular choice of alternative investment. These are digital currencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and many more.

Who invests AIF?

Registration as AIF

  • Investors can be Indian, NRI or foreign. …
  • Minimum corpus should be Rs. …
  • Minimum investment by each investor should be Rs. …
  • There are however no minimum investment requirement on units of AIF issued to the employees of the manager for profit sharing;

How can I start an alternative investment fund in India?

1,00,000/- to SEBI by way of bank draft in favour of “The Securities and Exchange Board of India”, payable at Mumbai. 3. On receipt of registration/ re-registration fees, SEBI will grant the applicant the certificate of registration as an Alternative Investment Fund. 1.

What percentage of NRIs is allowed in venture capital?

NRIs are also allowed to contribute to capital of Indian companies by investing in shares on Recognized Stock Exchanges under Portfolio Investment Route. The investment can be repatriable or non-repatriable, but the maximum limit of investment is 10% of paid-up capital of the relevant company.

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