The growth of Alternative Investment Funds (AIFs) in India offers investors exposure to unique strategies and assets not easily accessible through Mutual Funds (MFs) or Portfolio Management Services (PMS). Venture capital AIFs in particular, provide access to unlisted companies, fostering early investment in high-growth tech startups.

While India is a hotspot for innovation, diversifying internationally has benefits like asset diversification, access to advanced technologies, and exposure to multiple global markets. AIFs can register in GIFT City, making it easier for Indian investors to access international unlisted companies. However, potential risks include illiquidity and high-risk profiles, necessitating careful selection and due diligence.

Multi-Act operates a Private Equity AIF, focusing on capital markets technology platforms and the Insurtech sub-vertical, offering experienced leadership and potential for diversified investments in Fintech. Read about this in detail in our latest article authored by our AIF team, Sekar Iyer and Sanket Dabade.