Looking for a Best Aif Funds In India? Great! You have reached the right place; we are here to help you. AIFs offer a viable route for investors who want to seize the opportunity to invest in public and private facilities necessitated by India's progress needs.
They provide investors with a profitable investment option while also contributing immensely to the overall economic progress.
They are different from conventional investments like debt securities and stocks, making them the perfect option for domestic and foreign investors alike, especially high rollers.
AIFs accept funds from investors and use them according to the defined investment policy.
Also Read: Scripbox Review 2021: Is Good For Mutual Fund Investment, India Infoline or IIFL Review 2021 & How to invest in index funds in India
In this guide, we ranked and reviewed the 17+ best aif in India, along with our top 3 choices, so that you can pick the best one for you.
Top 10 Best Aif Funds In India With Buying Guide ( Updated 2022)
Want to jump straight to my top picks? My favorite Aif Funds is Abakkus Asset Manager and Roha Asset Managers.
1. Abakkus Asset Manager
Established in 2018, the company was founded on the concept of the abacus, an ancient computing instrument.
Later on, this Alpha-focused asset management company worked hard to establish itself in India as one of the best-performing asset managers.
The Abbakkus strategy is classified as Long-Term Only Category III AIF. The founder made it a point to build a reputation based on his more than two decades of expertise in financial services.
The basics, a focus on the fundamentals, and numbers summarise their simple idea and strategy when it comes to the concepts that make up this fund.
The small-cap space approach is a long-term only fund with an open-ended structure.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Abakkus Asset Manager |
Category | Open-Ended |
Strategy | Emerging Opportunities Fund |
1 Month Return | 8.10% |
3 Month Return | 27.50% |
6 Month Return | 67.70% |
1 Year Return | 31.90% |
2 Year Return | NA |
3 Year Return | NA |
5 Year Return | NA |
Return Since Inception | 25.20% |
Inception | Jun-19 |
2.Roha Asset Managers
Roha Asset Managers was founded in the year 2018. Since then, the firm has been granted permission to provide Category III alternative investment products, which use a fundamental approach to equities investing.
Over the years, the firm has been building the trust of its clients and providing them with the needed services.
The fund strategies focus on post-market correction investments in select small- and mid-cap firms to generate alpha or higher returns.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Roha Asset Managers |
Category | Open-ended |
Strategy | Roha Emerging Companies Fund |
1 Month Return | 5.88% |
3 Month Return | 27.58% |
6 Month Return | 88.26% |
1 Year Return | 31.21% |
2 Year Return | NA |
3 Year Return | NA |
5 Year Return | NA |
Return Since Inception | Not disclosed |
Inception | Nov-18 |
3. Girik Advisors
Girik Advisors was founded in the year 2009. Charandeep Singh and Varun Daga are the AIFs authorized fund managers.
They both supervise the company and have significant experience, totalling more than 20 years. With this expertise, their clients trust them to take care of their AIFs.
In keeping with the fund's theme, the firm employs a disciplined approach, as exemplified by the revolutionary 'CANSLIM' investment technique.
This approach aims to find "Early Leaders or Winners" before they reach their peak earnings growth curve.
The in-house staff takes a research-first approach, followed by thorough due diligence. As a result, a portfolio of high conviction is formed.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Girik Advisors |
Category | Close-ended |
Strategy | Girik Multicap Growth Equity Fund |
1 Month Return | 6.37% |
3 Month Return | 18.50% |
6 Month Return | 31.15% |
1 Year Return | 24.46% |
2 Year Return | NA |
3 Year Return | NA |
5 Year Return | NA |
Return Since Inception | 15.59% |
Inception | Nov- 18 |
4.Vishuddha Capital
Vishuddha Capital AMC was founded in November 2018 by Aditya Sood. The creator has 15 years of experience in fund management, stock research, and equity sales and is well aware of market dynamics.
Aside from the fundamentals, he has a track record of managing market equities in London.
The fund focuses on 25 equities to achieve long-term capital growth by investing in companies with a wide market capitalisation range.
The firm targets sectors like auto and auto-ancillaries, financials, consumers, healthcare, technology, and manufacturing.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Vishuddha Capital |
Category | Close Ended |
Strategy | India Value And Growth Fund |
1 Month Return | 3.77% |
3 Month Return | 18.78% |
6 Month Return | 40.80% |
1 Year Return | 11.26% |
2 Year Return | NA |
3 Year Return | NA |
5 Year Return | NA |
Return Since Inception | 10.92% |
Inception | Sep- 19 |
5.Ampersand Capital
This firm represents the combined efforts of a group of seasoned and well-regarded stock research analysts. The team has a total experience of more than 45 years under the hood.
The fund's growth objective is to build a 20-25 stocks portfolio based on a market capitalization-independent strategy.
The business recognizes sectors in the middle of multi-year upcycles and is driven by macro themes like the rising quality of life, jobs, and consumption.
The importance of focusing on organizations that improve their competitive edge is significant.
The statistics are carefully monitored and filtered according to a verified track record.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Ampersand Capital |
Category | Open-ended |
Strategy | Growth Opportunities Fund Scheme |
1 Month Return | 4.60% |
3 Month Return | 17.30% |
6 Month Return | 40.10% |
1 Year Return | 9.70% |
2 Year Return | 9.47% |
3 Year Return | 8.10% |
5 Year Return | NA |
Return Since Inception | 8.47% |
Inception | Sep - 17 |
6.Accuracap Tech
Artificial Intelligence-Driven Algorithm-based large-cap Portfolio is what Accuracap Tech is known for. This unique feature sets them apart from the other companies.
It was founded in the year 2011, specifically on September 19th. Naresh Chand Gupta and Raman Nagpal are the fund managers in charge of the AIFs.
The theme of the Vectra Fund is built on the basics of a long-only equity strategy.
Out of the current market conditions, a superior alternative to typical large equities funds and a distinct asset class for Indian investors have been formed to provide greater returns.
If you want to know more about them, you can look at the following table for detailed information.
AMC | Accuracap Tech |
Category | Open-ended |
Strategy | Vectra Fund |
1 Month Return | 0.59% |
3 Month Return | 12.99% |
6 Month Return | 31.28% |
1 Year Return | 9.10% |
2 Year Return | NA |
3 Year Return | NA |
5 Year Return | NA |
Return Since Inception | 6.30% |
Inception | Dec- 18 |
7.Pro alpha Capital
ProAlpha is a SEBI-registered AIF that is a subsidiary of Monsoon Capital, a US-based firm that has been in operation since 2016.
The firm employs basic, quantitative, and systematic trading tactics designed exclusively for the Indian markets.
The QG Dynamic Equity Fund, often known as QGD, is a ProAlpha Capital product that creates excellent long-term compounded returns. These returns will be higher than the benchmark Indian equity index.
The adopted investment method for large-, mid-, and small-cap companies is a bottom-up, rules-based fundamental approach.
Regardless of their size, the target firms have a track record of consistent growth, attractive valuation, and financial stability.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Pro alpha Capital |
Category | Open-Ended |
Strategy | QG Dynamic Equity Fund (QGD) |
1 Month Return | 2.55% |
3 Month Return | 13.95% |
6 Month Return | 33.16% |
1 Year Return | 9.01% |
2 Year Return | 5.58% |
3 Year Return | 5.10% |
5 Year Return | 7.90% |
Return Since Inception | 18.42% |
Inception | Jan - 14 |
8.Carnelian Asset Management
The Carnelian Asset Management firm was founded by Vikas Khemani, Manoj Bahety, Sachin Jain, and Swati Khemani. The company's foundation was based on the founders' curiosity and passion for capital markets investment.
This fund aims to invest in various baskets, including Magic, Compounder, and Opportunistic:
The magic basket is used to invest in a group of firms that have a vision of profits growth and valuation reversal.
The Compounder basket includes investments in a variety of companies to capture long-term earnings growth. Special scenarios such as mergers, demergers, open offers, buybacks, and other transitory headwinds are aimed at companies with deep value with cash flows
Opportunistic is focused on companies with deep value with cash flows.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Carnelian Asset Management |
|---|---|
Category | Closed-Ended |
Strategy | Capital Compound Fund |
1 Month Return | 1.90% |
3 Month Return | 7.50% |
6 Month Return | 28.80% |
1 Year Return | 6.53% |
2 Year Return | NA |
3 Year Return | NA |
5 Year Return | NA |
Return Since Inception | 9.66% |
Inception | May- 19 |
9.Alchemy Capital
Alchemy Capital was founded in 2018. Hiren Ved, the company's Co-Founder, Director, CEO, and CIO, is the fund manager for Alchemy Capital.
It provides the Leader of Tomorrow Fund geared towards AIF Category III.
If we look at the fund's theme and talk about it, we can see that the goal is to generate long-term capital appreciation.
The businesses chosen for financing are highly adaptable and driven by creativity and innovation.
Listed Indian Firms, PIPES, and IPOs are the three companies considered.
If you want to know more about them, you can look at the following table for detailed information:
AMC | Alchemy Capital |
Category | Open-Ended |
Strategy | Leaders of Tomorrow (ALOT) |
1 Month Return | 5.00% |
3 Month Return | 16.00% |
6 Month Return | 42.60% |
1 Year Return | 5.20% |
2 Year Return | 2.40% |
3 Year Return | NA |
5 Year Return | NA |
Return Since Inception | -1.20% |
Inception | Jan- 18 |
10.TCG Advisory Services
Chakri Lokapriya is the fund manager for TCG Advisory Services, which began operations in July 2017.
The manager's previous job obligations, which totals to roughly 22 years, add to his experience in the field.
According to the company, the fund's focus is matched with technological advancements in every other field.
This AMC takes a detour and invests in composites and other new-age materials.
The fund's primary goal is to invest in firms focused on growth and cutting-edge technologies, as well as in companies focused on innovation.
If you want to know more about them, you can look at the following table for detailed information:
AMC | TCG Advisory Services |
Category | Open-ended |
Strategy | SMF Disruption Fund |
1 Month Return | 1.83% |
3 Month Return | 17.25% |
6 Month Return | 40.87% |
1 Year Return | 4.16% |
2 Year Return | -1.75% |
3 Year Return | -4.84% |
5 Year Return | NA |
Return Since Inception | -2.56% |
Inception | Jul - 17 |
Types of Alternative Investment Funds
Category I AIF
The funds are put into brand new businesses and have high growth potential. They are thought to be both financially and socially feasible. Even the government encourages and incentivizes them because they pave the way for the overall development of the economy.
- Venture Capitalists: These funds are the backbone of startups. They primarily invest in the early stages of any high-potential (tech) companies seeking funding to bring their concepts to life. High-risk return funds are what these are called.
- Angel funds: Angel investors make investments in startups at their earliest stages and help steer its management in the right direction.
- Infrastructure fund: Money is invested in national assets such as roadways, airports, and other infrastructure. Returns from the fund include capital gains, dividend income, and tax advantages (but only if the government intends to support them).
- SME funds: These are investment opportunities in microbusinesses, small businesses, and medium-sized businesses. These finances are said to provide returns that are even greater than 8%.
- Social Venture Capital funds: These are financing that invests in the business that aims to make a positive difference to the world. A lower limit of 75% of the fund's assets will be invested in such businesses.
Category I AIF
The funds are put into brand new businesses and have high growth potential. They are thought to be both financially and socially feasible. Even the government encourages and incentivizes them because they pave the way for the overall development of the economy.
- Venture Capitalists: These funds are the backbone of startups. They primarily invest in the early stages of any high-potential (tech) companies seeking funding to bring their concepts to life. High-risk return funds are what these are called.
- Angel funds: Angel investors make investments in startups at their earliest stages and help steer its management in the right direction.
- Infrastructure fund: Money is invested in national assets such as roadways, airports, and other infrastructure. Returns from the fund include capital gains, dividend income, and tax advantages (but only if the government intends to support them).
- SME funds: These are investment opportunities in microbusinesses, small businesses, and medium-sized businesses. These finances are said to provide returns that are even greater than 8%.
- Social Venture Capital funds: These are financing that invests in the business that aims to make a positive difference to the world. A lower limit of 75% of the fund's assets will be invested in such businesses.
Category II AIF
This category includes funds that do not use leverage or borrowings for anything other than day-to-day operating costs.
- Private Equity funds: Private equity funds, also known as PE funds, invest in private companies that are not publicly traded. The investment portfolio ranges from four to seven years.
- Real-estate funds: As the name implies, these funds invest a pool of collected funds in various real-estate projects, providing investors with greater variety and potential for higher returns.
- Debt funds: The investors invest in both listed and unlisted businesses' high-risk debt equities.
- Fund of Funds (FOF): The investment in the other AIF vehicles is decided in a Fund of Funds. However, the same components cannot be distributed to the general public.
- Fund for distressed assets: It makes it possible to invest in struggling businesses and companies that have gone bankrupt. However, there is a significant risk involved.
Category III AIF
These are funds that provide investors with short-term investment options. The following funds are included in this category.
- Hedge funds: These funds are less subject to regulation and employ aggressive investment management techniques to maximise investors' profits.
- Private Investment in Public Equity funds (PIPE): Most businesses use this method to raise funds because the process of issuing a PIPE is less complicated than those of other traditional methods. Investors can get discounted shares of publicly traded companies in this market.
Features of Alternative Investments
One of the most critical aspects of starting up a business is having a current bank account. Banks now offer a variety of appealing current account deals and benefits to meet the diverse needs of businesses.
A few of the basic features of a current bank account are:
- There cannot be more than one current account for a single company.
- The primary goal of a current account is to make business transactions run as smoothly as possible.
- A current account needs a higher minimum deposit than a savings account.
- Penalties may be imposed if the minimum balance is not maintained.
- Individuals, proprietary concerns, companies, associations, trusts, and other entities can operate a current account.
- It makes it easier to transfer money receive checks and cash.
- A current account allows you to do things you really cannot do with a savings account.
- There is no limit to the number of exchanges and transactions completed in a single day.
- Some banks now offer current account interest rates as well.
- Current accounts charge fees on funds borrowed from the bank for a short period.
- KYC guidelines must be followed for current accounts, just as they are for savings accounts.
Benefits of Alternative Investments
- Not dependent on stock market: An investment that is mutually independent of the stock exchange does not fluctuate in response to the market's ups and downs.
Many investors believe they are diversifying their portfolios by holding REITs and other publicly listed alternatives, only to discover that they're as volatile and don't contribute much to adding value.
- Direct ownership: Most public investments are paper assets that include the discounted valuation of future expected income. You don't have any possessions.
Even if you put money in a REIT, you're still a long way from being able to put your name on the property's deed. But, when you invest in a private fund, you typically gain direct ownership of the assets they acquire. - No volatility: The stock value of a conventional public investment varies based on various factors, but it is rarely linked to an actual investment.
You can avoid the fluctuation of public investments since private investment securities are not publicly traded. Furthermore, your investment is usually backed by a valuable addition. The power of compounding is also minimized by volatility.
- Tax Benefits: Alternative investments can indeed offer significant tax advantages. Because of the system of many investment alternatives, you get to retain more of your profit.
You get to be a part-owner of both the fund or syndication in many private AIFs, and the tax benefits are completely yours. Pass-through depreciation, as well as long-term capital gains treatment, are the two most significant tax benefits. You can develop your investment tax-deferred or even tax-free based on how you construct it.
- Strong source of income: While not all private investment choices are cash-generating, many are, particularly in a cash-flowing property investment strategy.
- Passive investments: Most investors value their time highly. Effective management of a property or portfolio necessitates a significant amount of effort.
A whole new world has opened up due to the regulatory changes, most of which are passive.
Another benefit of truly passive funds or syndications is that you can take advantage of seasoned operators' expertise as well as relationships.
Conclusion
We assume your burning interest in learning about the best AIFs has been satisfied, at least partly. For starters, this article gives you a rough idea and presents you with the essentials.
You may understand the fundamental themes of the top-ranked AIFs right now and see how they achieve greater results.
After reading this article, you can make an investment decision. You can also learn about non-traditional investment possibilities, which are one of the hottest subjects right now.
I hope you liked our article on best aif funds in India, and it must have solved your queries such as top aif in India, top alternative investment funds in India, list of aif in India
if you have any comments or suggestions do share them in the comments below.
frequently asked question
Q1. How many AIFs are there in India?
As of July 2021, there are around 750+ registered AIFs in India. Even though there was a 30% decline in new registrations in 2020, the number managed to regulate itself in 2021.
Q2. Who can invest in AIFs?
To invest in AIFs, one can be of any nationality - an Indian, an NRI, or any other foreign national with a minimum corpus of Rs. 20,00,00,000 for each scheme and Rs. 10,00,00,000 for Angel Funds. Their minimum investment should be 1 to 25 lakh INR.
Q3. Can NBFC invest in AIFs?
No, they can't. However, SEBI is introducing some exemptions to this.
Q4. Does SEBI regulate AIFs?
Yes, an AIF scheme is subject to filing a placement memorandum with the SEBI and 1 lakh INR is payable as the scheme fees before the launch. This can be done along with the filing of the placement memorandum.
Q5. Can AIFs give loans?
Because AIFs are Indian entities, they have more flexibility in debt investment from a regulatory standpoint in India. AIFs are only allowed to invest in securities and cannot have any immediate loan exposure.
