Top 8 AIF Investment Options In India – Diversify Your Portfolio

Are you an investor looking for better alternatives than traditional options like stocks, bonds, and cash to get higher returns and capital appreciation?

If Yes, Alternative Investment Fund (AIF) can be the best choice.

Alternative Investment Funds (AIF) are privately pooled investment funds that don’t come under SEBI or other regulations in India.

However, it’s a big game for big players. These funds are specifically best for high-net-worth individuals and institutional investors ready to invest for big returns with manageable risk.

If you’re also interested in AIF and want to diversify your portfolio for higher returns, then keep reading this article.

In this article, we will explore everything about Alternative Investment Funds (AIFs) and some of the Top AIF in India to get higher returns and long-term profitability.

Let’s dive in!

Alternative Investment Fund (AIF)

Alternative Investment Fund (AIF) is different from traditional investment options. It’s a private pool of assets that includes various sectors to invest in, such as renewable energy, mining, real estate, infrastructure, hedge funds, angel funds, and non-conventional assets. 

What sets AIF apart is its autonomy from the SEBI laws of 1996 and 1999, and other board regulations These are growing sectors, and investing in these groups of assets can lower your risk, higher returns, and diversify your portfolio. 

It gives investors positive returns even in volatile or declining market conditions. It’s the best investment option, especially for high-net-worth individuals (HNI) and organizations who want to invest heavily in a growing market and grow their wealth.

Read More: Best Alternative to Mutual Funds

Top Alternative Investment Funds in India

Here’s the List of AIF in india where investors can invest and get higher returns and long-term wealth creation:

1. Hedge Funds 

Hedge funds are investment funds that collect money from Investors and invest in equity markets. It’s a high-risk and aggressive investment option that comes with higher returns. Most high networth individuals invest in hedge funds for capital appreciation. 

The best part is that hedge funds didn’t fluctuate as per market volatility and were able to give consistent returns. However, hedge fund managers charge 2% or more of the total returns earned annually as their management fees by working for high-net-worth individuals.

2. Infrastructure Funds

If you want to invest in top AIF in India with low risk and higher returns, then infrastructure funds are worth considering. These assets have consistent growth because they are linked with environmental growth and the government’s initiatives toward infrastructure development. 

Investing in the renewable energy sector is booming, with various projects in solar, wind, water, and hydropower being developed. Investing in environmental growth can give investors higher returns, low risk, long-term profitability, and capital appreciation. To invest in the growing renewable sector, get in touch with SustVest and invest for your long-term wealth creation.

3. Real Estate

Real Estate remains one of the top alternative investment options, offering higher returns, long-term profitability, and stable income compared to traditional investments to get. There was a time when investing in real estate required lakhs or crores of investment. However, with thee advent of REITs (Real Estate Investment Trusts), now Investors can start investing in real estate from a minimum of Rs.5,000 via the platform. 

Furthermore, investors have the opportunity to invest in commercial buildings and offices with a minimum amount and get a percentage of the share as ownership. Investors can get property ownership, capital appreciation, higher returns, stable rental income, and low-risk and long-term profitability with a diversified portfolio by investing in real estate.

4. Venture Capital Funds

Venture Capital Funds are a collection of funds that invest in leading startups that require capital for expansion and business growth. India is one of the largest hubs of the startup ecosystem, presenting investors with huge opportunities for capital appreciation and higher returns.. 

With the speed of startup growth, investors get a good amount of average return and percentage of ownership as per their invested amount. The main objective of venture capital is to help businesses scale and provide Investors with higher returns.   

5. Peer-to-peer Lending

P2P lending is a concept where investors deposit money in a bank to earn some interest on the same amount. On the other hand, banks will lend out the money to borrowers who will pay certain interest to the bank and keep a commission between getting interest from the borrower and paying some interest to depositors. 

However, today’s P2P lending differs and doesn’t require banks to get interest. There are various P2P lending platforms available such as FAIRCENT, LENDBOX, LIQUID LOANS, etc. These platforms offer 18-20% net returns, but there’s a risk involved in P2P lending. So investors should do in-depth research before lending money to any individual.

6. Angel Funds

Angel Funds are the collection of those funds that invest in a new business at an early development stage. It means that when the business launches and becomes profitable, investors receive dividends. 

In simple words, Angel funds help early-stage businesses develop and build profitable businesses, and investors get some ownership.

7. Commodities

Commodities such as oil, grain, agriculture products, renewable energy, metals, etc. can easily be bought and sold. Investing in commodities is one of the greatest options to keep investments safe and beat inflation. 

However, various factors should be considered per market conditions before investing in commodities. 

8. Private Equity

Private equity funds are funds that are raised and invested in companies that are not publicly traded. When a Private company is not listed on public exchanges, it’s difficult to raise capital from the public. This is where private equity funds help small and medium companies to fund their business growth and get investors capital appreciation and higher returns. 

These are a list of AIF investment options for investors to get higher returns and long-term profitability.

Check Out: Where We Can Invest Money: Exploring Low, Medium, And High Risk Investment Options

Benefits of AIF Investments

Here are some major benefits of investing in top AIF in India:

1. Higher Potential Returns

The biggest reason investors are considering AIF investment is because it gives higher returns than traditional investment options. It ensures long-term profitability, lower risks, and higher interest rates that help investors build wealth overall.

2. Lack of Volatility

Compared to a traditional market like the stock market, where so much fluctuation can affect investors. Now investors are considering AIF as a better investment option because it’s not affected by market volatility and ensures consistent returns.

3. Portfolio Diversification

Investors can diversify their portfolios by investing in AIF. It has numerous low-risk investment options that allow investors to build a stable income.

4. Tax Benefits

Alternative Investment Funds (AIF) are investment options that offerhigher-returns and less tax, so Investors can keep more profit and build long-term capital appreciation.

Read here to know: What is the Best Investment Plan In India In 2023?

FAQs

Why Should You Invest in Top AIF in India?

Investing in top AIF in India gives higher returns as compared to traditional investments. Also, it comes with manageable risk and long-term profitability.

What are the Risks in Top AIF in India?

Some risks that come with investing in top AIF in India, i.e., low liquidity, fund manager risk, valuation risk, and initial high costs investment required.

What is the Average Return in Top AIF in India?

The average return on investing in top AIF in India is around 14-20% annually. 

Is AIF Taxable?

Investing in AIF is tax-free, and there’s no obligation on the investment income.

Conclusion

Overall, Alternative Investment Funds (AIFs) have emerged as the best option compared to traditional investments. By making investments in top AIF in India, you can expect higher returns, manageable risk, long-term profitability, and stable income. Diversifying your portfolio with AIFs can be a prudent move to secure your financial future.

So if you plan to start investing in AIF, you have a range of top AIF Investments to choose from. However, investing in the renewable energy sector is a great option because it offers low-risk, stable income and long-term capital appreciation.

With SustVest, you can start your investment journey with expert guidance and invest for your stable future. Explore the potential of AIFs, and with SustVest’s support, you can make well-informed investment decisions that align with your financial goals.