An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that collects capital from investors and deploys it into alternative assets beyond conventional instruments such as mutual funds or fixed deposits  AIFs are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012, which aim to enhance transparency, investor protection, and oversight . They can be structured as trusts, companies, or Limited Liability Partnerships (LLPs), with most AIFs in India set up as trusts  AIFs typically require a minimum investment of ₹1 crore, making them suitable primarily for high-net-worth individuals (HNIs), institutional investors and sophisticated investors. Unlike mutual funds, which invest mainly in publicly traded securities, AIFs invest in private markets or employ specialized strategies not commonly available through traditional investment products