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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Overview of Alternative Investment Funds (AIFs)

A Category I AIF has a corpus with a minimum investment per investor of Rs 1 crore, with an exception for employees or directors of the AIF or its manager. Which statement about the minimum investment is correct under the AIF Regulations?

The minimum investment per investor in an AIF is Rs 1 crore, with a lower minimum of Rs 25 lakh permitted for employees or directors of the AIF or its manager. The other amounts listed do not match the regulations.

  1. AMinimum investment from any investor is Rs 10 lakh
  2. BMinimum investment from any investor is Rs 1 crore, except that employees or directors of the AIF or manager may invest at least Rs 25 lakhCorrect
  3. CMinimum investment is Rs 50 lakh for all investors
  4. DThere is no minimum investment amount

Explanation

The AIF Regulations require a minimum investment of Rs 1 crore per investor. Employees or directors of the AIF or its manager can invest a minimum of Rs 25 lakh. The other amounts are not the regulatory minimums.

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