What are Category I, Category II and Category III AIFs?

SEBI categorizes AIFs into three distinct tiers: • Category I AIF: Invests in early-stage ventures, startups, social ventures, SME funds, infrastructure funds, and sectors deemed economically positive by the government. They enjoy specific economic concessions. • Category II AIF: The most prominent category. Includes Private Equity (PE) funds, Private Debt/Credit funds, and Real Estate funds that do not undertake leverage other than to meet day-to-day operational requirements. • Category III AIF: Complex, active trading funds that employ diverse or complex trading strategies, including leverage, structured derivatives, and long-short equity models to generate absolute returns across all market regimes.

What is the minimum investment requirement for AIFs?

Under SEBI AIF Regulations, the statutory minimum investment commitment for an individual investor or corporate entity is ₹1 Crore. For directors, employees, or fund managers of the AIF, the minimum ticket is relaxed to ₹25 Lakh. For Accredited Investors who meet designated net-worth criteria verified by an authorized accreditation agency, specific ticket thresholds and diversification exemptions apply.

What are the risks and liquidity restrictions associated with AIFs?

AIF investments involve substantial structural considerations: • Capital Lock-in & Illiquidity: Category I and II AIFs are closed-ended with tenures typically spanning 3 to 7 years (with potential 1 to 2 year extensions). Premature redemption is generally not permitted. • Capital Drawdown Mechanism: Commitments are not funded upfront; capital is drawn down in tranches over 2 to 4 years as investment opportunities arise. • Business & Credit Risk: Investments in unlisted startups or private debt involve higher execution risk, default risk, and information asymmetry than publicly listed equities.

How do AIFs differ from mutual funds and PMS?

Key comparison dimensions include: • Investment Universe: Mutual Funds and PMS primarily invest in publicly listed equities and bonds. AIFs can invest heavily in unlisted private companies, structured venture debt, and pre-IPO instruments. • Minimum Ticket: MF (~₹500 SIP / ₹5,000 lump-sum) vs. PMS (₹50 Lakh) vs. AIF (₹1 Crore). • Liquidity: Mutual funds offer near-daily redemption; PMS offers T+2 to T+5 redemption liquidity; Category I/II AIFs enforce multi-year closed-ended lock-ins. • Taxation: Category I and II AIFs operate under a pass-through tax regime, whereas Category III AIFs are taxed at the investment fund trust level.

GET APP

NIFTY 5022,964.30-33.05 (-0.14%)

RELIANCE1,199.80-15.20 (-1.25%)

TCS2,409.70+59.70 (+2.54%)

HDFC BANK727.85+1.00 (+0.14%)

INFOSYS1,133.60+23.60 (+2.13%)

SBI953.60-6.40 (-0.67%)

SENSEX74,315.61+0.00 (+0.00%)

BAJAJ FINANCE963.00-2.25 (-0.23%)

ITC262.90-1.00 (-0.38%)

BHARTI AIRTEL1,874.80+20.80 (+1.12%)

L&T3,615.50-16.50 (-0.45%)

HUL1,876.90-20.20 (-1.06%)

AXIS BANK1,283.60-4.40 (-0.34%)

KOTAK BANK444.55-3.40 (-0.76%)

MARUTI11,363.00-82.00 (-0.72%)

ASIAN PAINTS2,338.60-11.40 (-0.49%)

TITAN4,437.60-18.20 (-0.41%)

SUN PHARMA1,759.40-4.60 (-0.26%)

NTPC313.20-1.45 (-0.46%)

POWER GRID248.50-1.35 (-0.54%)

TATA STEEL175.63-0.77 (-0.44%)

JSW STEEL1,196.20-4.20 (-0.35%)

ULTRATECH10,828.00-34.00 (-0.31%)

WIPRO177.03+2.98 (+1.71%)

TECH MAHINDRA1,722.30+72.30 (+4.38%)

HCL TECH1,362.00+2.00 (+0.15%)

BPCL291.95-1.75 (-0.60%)

NIFTY 5022,964.30-33.05 (-0.14%)

RELIANCE1,199.80-15.20 (-1.25%)

TCS2,409.70+59.70 (+2.54%)

HDFC BANK727.85+1.00 (+0.14%)

INFOSYS1,133.60+23.60 (+2.13%)

SBI953.60-6.40 (-0.67%)

SENSEX74,315.61+0.00 (+0.00%)

BAJAJ FINANCE963.00-2.25 (-0.23%)

ITC262.90-1.00 (-0.38%)

BHARTI AIRTEL1,874.80+20.80 (+1.12%)

L&T3,615.50-16.50 (-0.45%)

HUL1,876.90-20.20 (-1.06%)

AXIS BANK1,283.60-4.40 (-0.34%)

KOTAK BANK444.55-3.40 (-0.76%)

MARUTI11,363.00-82.00 (-0.72%)

ASIAN PAINTS2,338.60-11.40 (-0.49%)

TITAN4,437.60-18.20 (-0.41%)

SUN PHARMA1,759.40-4.60 (-0.26%)

NTPC313.20-1.45 (-0.46%)

POWER GRID248.50-1.35 (-0.54%)

TATA STEEL175.63-0.77 (-0.44%)

JSW STEEL1,196.20-4.20 (-0.35%)

ULTRATECH10,828.00-34.00 (-0.31%)

WIPRO177.03+2.98 (+1.71%)

TECH MAHINDRA1,722.30+72.30 (+4.38%)

HCL TECH1,362.00+2.00 (+0.15%)

BPCL291.95-1.75 (-0.60%)

GET APP

NIFTY 5022,964.30-33.05 (-0.14%)

RELIANCE1,199.80-15.20 (-1.25%)

TCS2,409.70+59.70 (+2.54%)

HDFC BANK727.85+1.00 (+0.14%)

INFOSYS1,133.60+23.60 (+2.13%)

SBI953.60-6.40 (-0.67%)

SENSEX74,315.61+0.00 (+0.00%)

BAJAJ FINANCE963.00-2.25 (-0.23%)

ITC262.90-1.00 (-0.38%)

BHARTI AIRTEL1,874.80+20.80 (+1.12%)

L&T3,615.50-16.50 (-0.45%)

HUL1,876.90-20.20 (-1.06%)

AXIS BANK1,283.60-4.40 (-0.34%)

KOTAK BANK444.55-3.40 (-0.76%)

MARUTI11,363.00-82.00 (-0.72%)

ASIAN PAINTS2,338.60-11.40 (-0.49%)

TITAN4,437.60-18.20 (-0.41%)

SUN PHARMA1,759.40-4.60 (-0.26%)

NTPC313.20-1.45 (-0.46%)

POWER GRID248.50-1.35 (-0.54%)

TATA STEEL175.63-0.77 (-0.44%)

JSW STEEL1,196.20-4.20 (-0.35%)

ULTRATECH10,828.00-34.00 (-0.31%)

WIPRO177.03+2.98 (+1.71%)

TECH MAHINDRA1,722.30+72.30 (+4.38%)

HCL TECH1,362.00+2.00 (+0.15%)

BPCL291.95-1.75 (-0.60%)

NIFTY 5022,964.30-33.05 (-0.14%)

RELIANCE1,199.80-15.20 (-1.25%)

TCS2,409.70+59.70 (+2.54%)

HDFC BANK727.85+1.00 (+0.14%)

INFOSYS1,133.60+23.60 (+2.13%)

SBI953.60-6.40 (-0.67%)

SENSEX74,315.61+0.00 (+0.00%)

BAJAJ FINANCE963.00-2.25 (-0.23%)

ITC262.90-1.00 (-0.38%)

BHARTI AIRTEL1,874.80+20.80 (+1.12%)

L&T3,615.50-16.50 (-0.45%)

HUL1,876.90-20.20 (-1.06%)

AXIS BANK1,283.60-4.40 (-0.34%)

KOTAK BANK444.55-3.40 (-0.76%)

MARUTI11,363.00-82.00 (-0.72%)

ASIAN PAINTS2,338.60-11.40 (-0.49%)

TITAN4,437.60-18.20 (-0.41%)

SUN PHARMA1,759.40-4.60 (-0.26%)

NTPC313.20-1.45 (-0.46%)

POWER GRID248.50-1.35 (-0.54%)

TATA STEEL175.63-0.77 (-0.44%)

JSW STEEL1,196.20-4.20 (-0.35%)

ULTRATECH10,828.00-34.00 (-0.31%)

WIPRO177.03+2.98 (+1.71%)

TECH MAHINDRA1,722.30+72.30 (+4.38%)

HCL TECH1,362.00+2.00 (+0.15%)

BPCL291.95-1.75 (-0.60%)

Alternative
Investment Funds

Access exclusive investment opportunities beyond traditional markets

₹25,000+ Cr

AIF Industry AUM

Interactive breakdown

₹500+ Cr

Active AIF Commitments

Interactive breakdown

15+

Sectors & Strategies

Interactive breakdown

30+ Years

Industry Experience

Interactive breakdown

OPPORTUNITIES ACROSS ALTERNATIVE ASSETS

AIF Categories

Category II AIF

Private Equity

Invest in high-growth businesses with long-term potential.

Learn More

Category I AIF

Venture Capital

Back innovative companies shaping the future.

Learn More

Category II AIF

Real Assets

Invest in tangible, income-generating assets.

Learn More

Category II AIF

Private Credit & Special Situations

Alternative lending and opportunity-driven investments.

Learn More

Alternative ideas for
a stronger tomorrow

At GCIC, we help you access alternative investments that create real impact for your portfolio and the economy.

Why Invest in AIFs with GCIC?

Access Unique Opportunities

Invest in assets beyond traditional public equity and debt markets.

Expert Fund Selection

Curated opportunities backed by institutional-grade research and due diligence.

Regulated & Transparent

SEBI-regulated structure with strict statutory audits, custodian reporting, and strong governance.

Long-Term Wealth Creation

Compounded non-linear returns aligned directly with your family office and portfolio milestones.

A SIMPLE, DISCIPLINED APPROACH

Your AIF Investment Journey

Understand

Assess your goals, liquidity horizon, and risk profile.

Curate

Shortlist suitable AIF opportunities from audited funds

Invest

Complete institutional onboarding, KYC, and contribution agreement.

Monitor

Track performance with quarterly valuations and audited manager updates.

SEBI REGULATIONS & ASSET CLASS ARCHITECTURE

SEBI AIF Framework

Understand the legal classifications, minimum commitments, and tax status governed by the Securities and Exchange Board of India

Framework Classification

Category I AIF

Focus & Strategies

Social Impact, Startups, Infrastructure, SMEs

Minimum Investment Mandate

₹1 Crore (₹25L for fund employees)

Taxation Regime

Pass-through status (Section 115UB) — Taxed at investor slab

Leverage & Borrowing

No leverage except for meeting temporary operational requirements

Ideal Investor Profile

Investors seeking early-stage alpha with government policy tailwinds

Let's Build a Stronger Portfolio Together

Connect with our experts to explore the right AIF opportunities for you.

FREQUENTLY ASKED QUESTIONS

AIFs — Common Questions

Categories I, II & III, private equity, hedge strategies, structured credit, and liquidity lock-ins.

Explore all AIFs FAQs

An Alternative Investment Fund (AIF) is a privately pooled investment vehicle established or incorporated in India that collects funds from sophisticated domestic and global investors for investing in specialized, non-traditional asset classes in accordance with SEBI (Alternative Investment Funds) Regulations, 2012. AIFs provide access to private equity, venture capital, structured private debt, distressed assets, real estate development funding, and long-short quantitative hedge fund strategies that are inaccessible through traditional public equity markets.

Alternative
Investment Funds

Access exclusive investment opportunities beyond traditional markets

₹25,000+ Cr

AIF Industry AUM

Interactive breakdown

₹500+ Cr

Active AIF Commitments

Interactive breakdown

15+

Sectors & Strategies

Interactive breakdown

30+ Years

Industry Experience

Interactive breakdown

OPPORTUNITIES ACROSS ALTERNATIVE ASSETS