What are the five key advantages of Category III AIFs?

Within Category III AIFs, investors gain access to a broad spectrum of investment avenues, spanning listed and unlisted companies, derivatives, structured products, and other AIF units. This diversity empowers investors to spread their risk across various asset classes, potentially enhancing portfolio resilience and returns.

Diverse Investment Options

Category III AIFs offer a flexible fund structure, accommodating both open-ended and closed-ended formats. Investors can choose between these structures based on their investment horizon and liquidity preferences, aligning their capital deployment with their financial goals.

Flexible Fund Structure

With a minimum ticket size of Rs 1 crore, Category III AIFs cater to investors with substantial capital, fostering a community of high-net-worth individuals and institutional players. This exclusivity not only ensures a conducive investment environment but also opens doors to potentially lucrative opportunities typically inaccessible to retail investors.

Higher Ticket Size

One of the distinguishing features of Category III AIFs is their ability to leverage positions, with leverage of up to two times the total fund corpus. Leveraging enables fund managers to amplify returns by strategically utilizing borrowed funds, potentially magnifying gains in favorable market conditions.

Leverage Positions

Consult with financial advisors or professionals who specialize in working with gig workers. They can provide personalized advice and guCategory III AIFs offer tax advantages, with income taxed at the AIF level. The tax treatment varies based on the fund’s structure, whether it operates as a trust, Limited Liability Partnership (LLP), or company. Optimal tax structuring can enhance after-tax returns for investors, contributing to overall portfolio performance.idance tailored to your unique financial situation and goals.

Taxation Benefits