RS Capital · Alternative Investment Funds (AIF)

Category III AIF

Hedge-style Category III AIFs pursue complex, active strategies and may use leverage and derivatives, raising both potential and risk.

Updated July 20, 2026 By Rajesh Srivastava 4 min read Sub-service

Category III AIFs pursue diverse or complex trading strategies, including long-short and derivative-based approaches, and may use significant leverage. They are aimed at sophisticated investors comfortable with active, higher-risk strategies and the volatility they bring.

With a minimum commitment of typically Rs 1 crore, these funds can be volatile: leverage and derivatives amplify both gains and losses, drawdowns can be sharp, and returns are not assured. They belong only in portfolios that can absorb such swings without forcing a sale. We are frank about when they do and, just as often, do not fit.

  • Access to hedge-style and long-short AIF strategies
  • Scrutiny of leverage, risk controls and track record
  • Clear disclosure of volatility and loss potential

Reach out for an honest assessment of Category III suitability for your situation.


Ready to start? Book a free 30-minute consultation through the form on the right, or reach out directly via WhatsApp / email.