5 things to know about Category III Alternative Investment Funds

1.Category III AIFs invest in securities of listed as well as unlisted investee companies, derivatives, complex or structured products, or other AIF units.
2.These can be open-ended or closed-ended funds. For a closed-ended fund, the minimum tenure is three years.
3.The minimum ticket size for investing in Category III AIFs is Rs 1 crore.
4.A Category III AIF can take leverage positions of up to two times the total fund corpus.
5.The income earned by this fund is subject to taxation at the AIF level and depends on the structure of incorporation of the AIF as a trust, LLP or a company.


Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.