What is Alternate Investments
Alternate Investments refer to non-traditional financial assets that exist outside conventional investment categories such as equities, bonds, or cash. These instruments provide access to a broader range of opportunities that are typically unavailable through standard market channels.
They include asset classes such as Private Equity, which involves investing in privately held companies; Venture Capital, which supports innovative start-ups and emerging businesses; Hedge Funds, which employ advanced strategies to maximize returns; Real Estate, offering tangible asset-backed growth; Structured Products, designed to achieve specific risk–return objectives; and Alternative Investment Funds (AIFs) — professionally managed, SEBI-regulated vehicles that cater to sophisticated investors across various themes and strategies.
Unlike traditional investments that are often influenced by market movements, Alternate Investments tend to have a low or negative correlation with public markets, making them a powerful diversification tool. They help investors reduce portfolio volatility, mitigate market risk, and capitalize on long-term wealth creation opportunities. By balancing innovative investment approaches with disciplined management, Alternate Investments aim to deliver superior, risk-adjusted returns over time — especially suited for investors seeking stability, exclusivity, and performance beyond conventional avenues.
There are 3 main types of Alternate Investments :
- SIF
- PMS
- AIF
SIF (Specialized Investment fund)
Exclusive. Diversified. Designed for the Visionary Investor.
A Specialized Investment Fund (SIF) is a sophisticated investment structure designed for high-net-worth individuals (HNIs), family offices, and institutional investors seeking diversified, high-growth opportunities beyond conventional markets.
SIFs are regulated investment vehicles that pool investor capital to invest across a wide range of asset classes, such as Private Equity, Venture Capital, Real Estate, Hedge Funds, Infrastructure, Debt Instruments, Commodities, and Structured Products. These funds offer strategic exposure to both domestic and global markets while maintaining a disciplined, professionally managed framework.
In essence, a SIF allows investors to participate in specialized and alternative investment opportunities through a professionally managed platform.
Unlike traditional equity or debt investments, SIFs are built with flexible strategies that aim to deliver higher risk-adjusted returns and diversify portfolio exposure.
They are designed for investors who wish to move beyond standard market instruments and explore structured, goal-oriented investment approaches tailored to their financial objectives and risk appetite.
SIFs are ideal for seasoned investors, HNIs, and institutions who seek:
- Broader global diversification
- Higher return potential with calculated risk
- Long-term wealth creation through professional management
- A more innovative and exclusive investment structure
PMS (Portfolio Management Services)
Personalized Strategies. Professional Management. Proven Growth.
Portfolio Management Services (PMS) offer a customized investment approach designed to help investors achieve their long-term financial goals through expert-driven, research-backed equity and debt strategies.
Unlike standard mutual funds, PMS gives you personalized portfolio ownership — your investments are held in your own name, and every decision is made according to your unique objectives, risk profile, and market outlook.
PMS is a professional investment service where your portfolio is managed by qualified fund managers who actively make buy-and-sell decisions on your behalf.
It is ideal for investors seeking personalized attention, transparency, and focused wealth creation through direct ownership of securities.
Each PMS portfolio is built after a deep understanding of your financial goals, time horizon, and risk tolerance, ensuring that your money works efficiently and strategically.
PMS is ideal for high-net-worth individuals (HNIs) and experienced investors looking for:
- Personalized portfolio construction
- Long-term wealth creation with managed risk
- Exclusive access to institutional-quality research and management
- Transparent, flexible, and professionally guided investing
AIF (Alternate Investment Funds)
Innovative Strategies. Diversified Growth. Smarter Investing.
Alternative Investment Funds (AIFs) represent a premium category of investment vehicles designed for investors who want to go beyond traditional options like stocks, bonds, or mutual funds.
AIFs pool money from high-net-worth individuals (HNIs) and institutional investors to invest in alternative asset classes such as Private Equity, Venture Capital, Real Estate, Debt, Hedge Funds, and Structured Products — all managed by professional fund managers under a SEBI-regulated framework..
An Alternative Investment Fund is a privately pooled investment vehicle that collects funds from sophisticated investors and invests them in accordance with a defined investment policy.
Unlike mutual funds that invest primarily in listed securities, AIFs focus on unlisted, high-growth opportunities — offering investors potentially higher returns through diversification and specialized strategies.
AIFs are governed by the Securities and Exchange Board of India (SEBI), ensuring transparency, regulation, and investor protection..
1. Category I
Focus on investments that have a positive economic impact and promote entrepreneurship and development.
These include:
- Venture Capital Funds
- SME Funds (Small & Medium Enterprises)
- Social Venture Funds
- Infrastructure Funds
2. Category II
Invest in private equity, debt, or hybrid instruments that do not fall under Category I or III.
These funds typically do not leverage and provide stable, long-term growth opportunities.
Examples include:
- Private Equity Funds
- Debt Funds
- Fund of Funds
3. Category III
Engage in complex or diverse trading strategies to generate short- to medium-term gains.
They may use leverage and derivatives to enhance performance.
Examples include:
- Hedge Funds
- Long-Short Equity Funds
- Arbitrage or Market-Neutral Funds