About AIF
An AIF is a privately pooled investment vehicle that collects funds from high net worth (HNI) and Ultra HNI customers for investing in hedge funds, private equity funds, venture capital etc. The minimum investment amount for an AIF is Rs.1 crore. There are three main categories of AIFs:
- Category 1: These AIFs invest in small and medium enterprises (SMEs), start-ups and new economically viable corporations that have high growth potential. These include infrastructure funds, venture capital funds, angel funds and social venture funds etc.
- Category 2: The AIFs that do not undertake leverage or borrowing other than to meet their day-to-day operational needs or do not fall under categories 1 and 3 are considered as Category 2 AIF funds. These include debt funds, fund of funds and private equity funds.
- Category 3: These AIFs engage in many complex and diverse trading strategies and may employ leverage including investing in listed or unlisted derivatives. These include private investment in public equity funds, hedge funds etc. We are also pleased to share four strategies that can be used to invest in the four Category 3 AIFs mentioned below:
We are also pleased to share that Sharekhan has tied up with the below mentioned strategies since Mar-23 in Category 3 AIFs space:
| AIF Name | Type (open-ended/closed-ended) | Availability Period (in case of closed-ended) | Segment |
| Abakkus Diversified Alpha Fund (CAT III AIF) | Closed for subscription | Closed for subscription | All Segments |
| ICICI Prudential Emerging Leaders Fund (CAT III AIF) | Close-ended | Closed for subscription | All segments |
| ICICI Prudential Equity Opportunities Fund (CAT III AIF) | Close-ended | Extended (Closing in Nov-23) | All segments |
| Whiteoak India Equity Fund (CAT III AIF) | Close-ended | Closing in Sep-23 | All segments |
| Finideas Growth Fund – Scheme 1 (CAT III AIF) | Open-ended | NA | Sharekhan One only |
We have put together a repository of all sales related materials pertaining to AIFs published so far in this one mail to help you engage with your clients better and to improve your own understanding on all aspects of AIFs.
We will continue to update this compendium on an ongoing basis and as and when we empanel ourselves with more product providers. So watch this space for more.
Enablers at a glance
| Output | Purpose | Target Group | Frequency of update |
| AIF Sales Enablers | |||
| ICICI Prudential Equity Opportunities Fund: | • A close-ended Category 3 AIF that invests in securities across market capitalisation and that have a contrarian style of investing
• Contrarian investing includes investing in businesses enjoying some economic moat, companies in sectors with high barriers to entry and/or undergoing special situations |
Sharekhan One Segment only (internal) | Monthly |
| Whiteoak India Equity Fund | • A close-ended Category 3 AIF that follows a “Balanced Portfolio” style
• It includes a blend of value and growth, a blend of mid-cap, small-cap and large-cap stocks, a blend of cyclicals and defensive sectors, and a blend of domestic and export-oriented sectors |
Frontline only (internal) | Monthly |
| Finideas Growth Fund | An algo-driven open-ended Category 3 AIF that invests in Nifty (75) and Bank Nifty (25) indices, and hedges the portfolio with short-term option strategies | Front-line only (internal) | Monthly |
| AIF Fee Structure | This sheet provides the fee structure across AIF product providers that we have empanelled with. | Front-line only (internal) | Ad hoc |
We urge you to use the resource actively to engage with clients.
Also suggest topics on which you need support and share your feedback on the enablers with Jenny Parekh at jenny.parekh@sharekhan.com.
Client conversation master kar, Sharekhan kar.
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Compliance Officer: Ms. Binkle R. Oza; Email ID: complianceofficer@sharekhan.com; Tel: 022 62263303.
Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and the T&C on www.sharekhan.com ; Investment in securities market are subject to market risks, read all the related documents carefully before investing.