Alternative Investment Funds (AIF) are privately pooled, SEBI-regulated vehicles that invest beyond listed equities and bonds, spanning venture capital, private equity, private credit, real assets and hedge-style strategies. SEBI classifies them into Category I, Category II and Category III, each with a distinct mandate, structure and risk profile, so choosing the right category matters as much as choosing the right manager.
AIFs are designed for sophisticated investors and typically carry a minimum commitment of Rs 1 crore. They can involve illiquidity, long lock-in periods, capital drawn down in stages, leverage and concentrated positions. Capital is genuinely at risk, exits can be delayed well beyond expectations, and returns are never assured. Some strategies, particularly in early-stage or private markets, can lose money on individual holdings entirely.
Many AIFs suit only investors who can tie up capital for several years and absorb drawdowns without stress. We assess this fit rigorously against your wider balance sheet and liquidity needs, and we will say plainly when an allocation to alternatives does not improve your position. The right AIF can add diversification and access to opportunities public markets do not offer, but the wrong one simply locks up capital in an illiquid, high-cost structure for years. Getting that distinction right is the whole point of careful selection, and it is where we spend most of our effort.
What's included
- Access across SEBI Category I, II and III AIF strategies
- Independent due diligence on managers, structures and track records
- Matching of lock-in and liquidity terms to your real needs
- Clear explanation of leverage, illiquidity and concentration risk
- Documentation, capital-drawdown and reporting support
- Transparent disclosure of fees, carry and expenses
Why RS Capital
RS Capital is the specialised arm of Arjun Financial Services, founder-led by Rajesh Srivastava (Chartered Wealth Manager, USA and ICWA finalist) with 20-plus years in markets and advisory. Our focused four-person team runs deep, independent due diligence and is candid about which AIFs are worth your capital and which are not. We work for honest fit, not for placing product, and we are entirely comfortable recommending against a fund when the terms or risks do not stack up.
If you are weighing an allocation to alternatives, book a suitability consultation and we will review structure, risk, liquidity and eligibility with you, with no obligation to proceed.
What's included
Ready to start? Book a free 30-minute consultation through the form on the right, or reach out directly via WhatsApp / email.