NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Overview of Alternative Investment Funds (AIFs)
Under the AIF Regulations, what is the minimum investment an investor (other than employees or directors of the AIF or its manager) must make in an AIF scheme?
The minimum investment per investor in an AIF is ₹1 crore. A lower minimum of ₹25 lakh is allowed only for employees or directors of the AIF or its manager. This high threshold reflects that AIFs are meant for sophisticated, high net worth investors.
- A₹10 lakh
- B₹25 lakh
- C₹1 croreCorrect
- D₹5 crore
Explanation
The regulations prescribe a minimum investment of ₹1 crore per investor in an AIF. A lower amount of ₹25 lakh applies only to employees or directors of the AIF or the manager. ₹10 lakh and ₹5 crore are not prescribed thresholds.
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