Funds & AIFs

A mutual fund and an AIF can hold some of the same assets, yet they are built for different investors and behave very differently once your money is in. The gap is not just the minimum ticket. It is liquidity, transparency, tax and how much the outcome depends on one manager.

Category II alternative investment funds are now the backbone of India’s private markets. As of 30 June 2026, they accounted for about ₹13 lakh crore of the industry’s ₹17.5 lakh crore in commitments, roughly three-quarters of the total. If you are an HNI or family office being offered a private equity, private credit or real estate fund, it is very likely a Category II AIF.