instruments · advanced
AIF categories
Alternative Investment Funds in India are classified into Category I, II, and III under SEBI AIF regulations.
Category I AIFs include venture capital, SME funds, social venture, and infrastructure funds with specific policy roles.
Category II covers many private equity and debt funds that do not undertake leverage beyond day-to-day needs.
Category III AIFs may use complex or leveraged strategies, including hedge-fund style approaches.
Each category has distinct investment conditions, reporting duties, and investor eligibility norms.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.