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Alternative Investment Fund

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AlF (also known as Alternative Investment Funds) is an investment option made primarily for HNIs and sophisticated investors. Unlike standard mutual funds, AIFs allow investors to participate in niche strategies, unlisted opportunities (private equity, venture capital, and real estate), and alternative asset classes that are otherwise unavailable to the broader market.

At Anand Rathi Preferred, we bring these niche opportunities for HNIs like you. Be it leaders in corporates, owners of growing businesses, or professionals like doctors and lawyers – get access to AIFs to match your goals.

Benefits of Investing in an Alternative Investment Fund with AR Preferred

At AR Preferred, investing in Alternative Investment Funds is more than just returns — it's about building a portfolio that is smart, transparent, and built to last. Every strategy is chosen with care, keeping your long-term goals at the centre.

Diversification Beyond Public Markets

Diversification Beyond Public Markets

Access opportunities like private equity, venture capital, and real estate investments are not usually available in public markets.

High-Conviction Strategies

High-Conviction Strategies

Every fund we select is backed by strong research and careful screening, focusing on quality over quantity.
Client Support and Professional Management

Client Support and Professional Management

Our team ensures complete clarity to our clients and confidence regarding AIFs at every step.

Personalized Reporting

Personalized Reporting

Receive simple, timely updates to ensure your portfolio is always aligned with your goals.
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Why AIFs Are the Best Investment Choice for HNIs

For high-income professionals, business owners, institutions, and family offices, Alternative Investment Funds offer a smarter and more effective way to strengthen their wealth.

Enhanced Returns Potential

Enhanced Returns Potential

By accessing sectors and deals unavailable in public markets, your overall portfolio can improve its return rate.

Tax Efficiency

Tax Efficiency

Certain categories of AIFs offer favorable tax treatment, further optimizing post-tax returns.

Portfolio Balance

Portfolio Balance

In most cases, AIFs act as a hedging tool against volatility in equity markets and inflation erosion in fixed income.

Exclusive Access

Exclusive Access

Many AIFs are capacity-constrained and available only to a select set of investors – for those who wish to have a professional outlook on their current investment portfolio.

With AIFs, invest in untapped potential instruments, such as private equity, venture capital, and hedging strategies – rather than stocks and bonds.

Who Can Invest in an AIF

AIFs are meant for investors who have the capacity and appetite for AIF (Alternative Investment Funds).
So, if you are;

Please note: The Minimum Investment in AIFs is ₹1 crore (as per SEBI guidelines).

High Net-Worth Individuals (HNIs)

High Net-Worth Individuals (HNIs) with surplus wealth.

Business Owners and MSME Directors

Business Owners and MSME Directors seeking diversification.

Doctors, Lawyers, Architects, and C-suite officers

Professionals such as Doctors, Lawyers, Architects, and C-suite officers have high annual incomes.

Family Offices & Trusts focused on long-term wealth planning.

Family Offices & Trusts focused on long-term wealth planning.

NRIs and Global Indians who want exposure to India-focused opportunities.

NRIs and Global Indians who want exposure to India-focused opportunities.

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Documents Required for Investing in Alternative Investment Funds

PAN Card (mandatory)

Aadhaar Card (for address & identity proof)

Passport / Voter ID / Driving License (as ID/address proof, if Aadhaar not given)

Recent Passport-size Photograph

Proof of Address (utility bill, bank statement, etc. – not older than 3 months)

Customer Reviews

What Our Customer Has to Say About Us

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Dr. Divye Chhabra 
We would like to express our thanks for the work you have done for us over the past years. The expertise and attention to detail with which you have handled our financial affairs could not be faulted. Particularly reassuring to us is our feeling of certainty in the absolute integrity of your dealings with us. Your continual advice on financial planning issues has saved us significant amounts of money. May you prosper, along with your clients.

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Mr Manmohan Nagalia
I have been a client of Anand Rathi since 2010 and would highly recommend their services. They have assisted me with my complex financial structures and I have been more than happy with the results. I have recommended a number of my friends and family to Anand Rathi and they also are very happy with the service. I will definitely continue to praise about Anand Rathi services. This is what financial advisors should do! I have never had this kind of experience in the past with financial advisers and this is the kind of service I have been looking for. It’s nice to have one place to come to.

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Retd. Brgd Om Pal Singh Chauhan
I am absolutely delighted with your service. It is really refreshing to work with a financial adviser who is truly interested in their client’s needs, circumstances and preferences. What really impressed me was the way you took the time to get a feeling for where I was at, your depth of knowledge, lateral thinking and your common sense approach. Your professional, ethical and caring demeanor elicits my trust and respect and I gladly recommend your services whenever possible.

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Laxmi Singh & Pragati Singh
Just wanted to thank you for all the excellent service and help in planning our investments. Couple of things that worked well for us are your Prompt service, Quick resolution, faster response TAT and Excellent advisory services suited to our risk appetite. Both I and my husband have had a great experience in the last 2 years and we feel assured that our life savings is in good hands. Keep up the good work and keep rocking 

FAQs

Answers to Common Questions About AIFs

FAQ
Investing in an AIF with AR Preferred is simple. Once you complete your KYC and documentation, our team helps you select the right fund based on your goals. After that, you make your investment (as per SEBI norms). From there, you'll receive regular updates on your portfolio from the respective AMC (Asset Management Company).
The Securities and Exchange Board of India (SEBI) regulates the AIF investment funds in India. They ensure that every fund operates within strict legal and compliance guidelines, giving HNI investors an added layer of security.
By SEBI regulations, the minimum investment is ₹1 crore.
The Cat 1 and Cat 2 AIFs fall under the closed-ended funds category. Even many Cat 3 funds have lock in but it depends from fund to fund. Hence, they have a lock-in period of at least 3 years, with the maximum period depending on the AMC. They can extend up to 2 years, with approval from 2/3rd of unitholders.
The AIF investments are not as highly liquid as mutual funds. Some funds provide liquidity (exit option), post lock-in period. However, for most AIFs, early exit is not an option and investment can be redeemed at maturity or at pre-defined intervals.
Traditional investments like stocks, bonds, or mutual funds are widely available and easily traded on the exchanges.
AIFs, on the other hand, provide access to exclusive (or niche) opportunities that are not typically available in the public market, such as private equity, private credit, and real estate.
The basic difference is that mutual funds are open to all to invest with a small amount. In contrast, the Alternative investment funds are just available for HNIs with a minimum corpus of ₹1 crore. They are less liquid (mostly Cat I & II AIF), but come with high earning potential.
At AR Preferred, the minimum investment limit required for any AIF investment is ₹1 crore.
AIFs are classified into three categories:
Cat I AIF: Venture capital funds, SME funds, social venture funds.
Cat II AIF: Private equity funds, debt funds, fund of funds.
Cat III AIF: Those not included in Cat 1 and Cat 2 fall under this category, like hedge funds, complex strategies like derivatives trading.
Working with AIFs, we, at AR Preferred, try to bring access to niche opportunities and also let clients avail these products. There are some investment opportunities not available in regular markets, and AIFs become an ideal investment tool to bring potentially higher returns to HNI investors.
AIFs are usually invested through a lump-sum commitment. However, some funds allow the capital to be drawn down in stages (called "capital calls") rather than paying it all up front. Unlike mutual funds, SIP-style monthly investing is not common in AIFs.
The taxation of an Alternative investment fund depends on the category of the AIF:
Category I & II: Income is taxed directly in the hands of the investor (via pass-through status).
Category III: Taxed at the fund level itself.
(Note: As tax rules evolve, it's always preferable to consult your tax advisor before making an investment.)
AIFs are ideal for HNIs, business owners, family offices, and high-income professionals who:
  • Those who want to diversify beyond regular stocks and bonds.
  • Have a long-term horizon and the ability to stay invested.
  • Investors are comfortable with higher ticket sizes and lower liquidity.