What is category I Alternative Investment Fund?

1. Category I AIFs is one of the broad categories of AIF that invest in startups, SMEs and socially and economically viable projects and have 4 types of funds:

2. Venture capital funds invest in start-ups which have a high growth potential but are lacking the funds to expand further.

3. Infrastructure funds invest in the development of public infrastructure like roads, rail infrastructure and airports.


4. Angel funds also invest in start-ups but the investors are called “angels” as they bring in experience in business management to guide the underlying companies.

5. Social venture funds invest in companies which intend to make profits while solving social or environmental issues.

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