Alternative Investment Funds and Real Estate Investment Trusts
Anything alternate to traditional form of investments gets categorized as alternative investments. Now, what is considered as traditional may vary from country to country. Generally, investments in stocks or bonds or fixed deposits or real estate’s are considered as traditional investments. However, even with respect to investments in stocks, if the investments are in the stocks of small and medium scale enterprises (SMEs), it gets categorized as alternative investments in many jurisdictions (For instance, the SME exchange is called as Alternative Investment Market (AIM) in UK). Generally, the term AIF refers to private equity and hedge funds.
In India, alternative investment funds (AIFs) are defined in Securities and Exchange Board of India (Alternative Investment Funds) . It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership(LLP) which are not presently covered by any Regulation of SEBI governing fund management (like, Regulations governing Mutual Fund or Collective Investment Scheme)nor coming under the direct regulation of any other sectoral regulators in India-IRDA, PFRDA, RBI. Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India
- Our various write ups on this subject
- Our various write ups on Venture Capital and private equity funds
- Our various write ups on Collective Investment Scheme