Category I Alternative Investment Funds: 5 things to know

1.Category I AIFs invest in sectors that are considered economically and socially desirable by the government or regulators.
2.These primarily invest in startups, early stage ventures, small- and medium-sized enterprises (SMEs), or infrastructure and other social ventures.
3.These may offer the potential for higher returns, but also come with a higher level of risk compared with traditional investment options.
4.These are typically open to institutional investors, such as banks, insurers, pension funds, and family offices and HNIs, subject to minimum investment.
5.The liquidity of investments in category I AIFs is variable as it depends on their underlying assets and investment strategies.


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