Unlisted businesses before they list. Pre-IPO and QIP allocations. Concentrated private credit and hybrid capital. AIFs are how sophisticated investors reach the assets that sit outside a public scheme's mandate — and how they accept the illiquidity that comes with them.
Worth saying up front: for most investors, most of the time, a good mutual fund does this job better and cheaper. PMS is a different tool, not a superior one. If it does not suit your situation, we will tell you so and point you to the funds that do.
SEBI sorts every AIF into one of three buckets. The category tells you a great deal about what the fund can do, how long your money is committed and how it will be taxed.
Start-ups, early-stage ventures, social ventures, SMEs and infrastructure — sectors treated as economically desirable, so these funds receive certain concessions. Generally close-ended and pass-through for tax.
Venture capital funds, angel funds, SME funds, infrastructure funds
The largest category by commitment. Invests in unlisted companies through equity or debt, without leverage beyond day-to-day needs. Almost always close-ended: capital is called in tranches and returned as investments are realised. Generally pass-through for tax.
Private equity, growth capital, private credit, real estate, fund of funds
We distribute a fund in this category
Diverse or complex trading strategies, permitted to use leverage including through derivatives. Often open-ended, with NAV published periodically and a defined redemption route. Generally taxed at fund level, so you receive proceeds already taxed.
Long only funds, long short funds, absolute return funds
We distribute a fund in this category
Most PMS offerings give you a choice: a flat fee, or a lower flat fee plus a share of the gains above a hurdle. Which is cheaper depends entirely on how the year goes — so here is the arithmetic, before you commit.
Illustrative inputs
Fee payable for the year
2.50% of ₹1.00 Cr
1.50% flat (₹1,50,000) + 15.00% of gains above 10.00% (₹75,000)
On an assumed 15.00% gross return, using the option b
Option B costs ₹25,000 less this year. The two structures cost the same at a gross return of 16.7%. Below that the hybrid fee is cheaper; above it, the flat fee is.
An illustration of fee mechanics only. It is not a projection of returns, does not model quarterly or high-water-mark calculations, and excludes brokerage, custody and statutory charges, exit load and taxes. Actual fees are governed by the fee schedule in your PMS agreement, which prevails. Performance fee terms vary materially between managers — check whether the hurdle is a soft or hard hurdle and how the high-water mark is defined.
Three professionally managed products with genuinely different jobs. Read the liquidity and tax rows carefully — they are where investors are most often surprised.
Mutual fund | PMS | AIF | |
|---|---|---|---|
Minimum investment | ₹500 by SIP | ₹50 lakh | ₹1 crore |
What you own | Units of a pooled scheme | The shares themselves, in your own demat | Units of the fund |
Can hold unlisted assets | Barely — tight caps | Listed securities in practice | Yes, this is the point of the structure |
Concentration | Strict diversification limits | Manager's own limits, often 20% | Up to 25% of the fund in one investee |
Liquidity | One to three working days | Exit permitted, subject to load | Close-ended funds return capital only as investments are realised |
How you pay in | Lump sum or SIP | Lump sum | A commitment, drawn down in tranches over years |
Fee shape | Single expense ratio | Fixed, or lower fixed plus performance fee | Management fee plus carried interest above a hurdle |
How you are taxed | Taxed when you redeem | Taxed on each realised gain in your account | Category I & II generally pass-through; Category III generally taxed at fund level |
Reporting | Monthly factsheet, daily NAV | Live portfolio in your own login | Periodic manager reports; valuations of unlisted holdings are estimates |
Framework | MF Regulations, 1996 | Portfolio Managers Regulations, 2020 | AIF Regulations, 2012 |
* The row that changes decisions is “how you pay in”. A ₹1 crore AIF commitment is not ₹1 crore leaving your account on day one. It is a legal obligation to fund calls when the manager makes them, often over three or four years — and failing to fund one has consequences set out in the Contribution Agreement. The next section shows how that actually plays out. | |||
The single most misunderstood mechanic in a close-ended fund. Money goes out in pieces, comes back in pieces, and the middle years feel like nothing is happening.
Read both columns. If the right-hand one describes you better, we would rather you were in a PMS or mutual funds — and we will help you do that well.
You already hold a diversified core in mutual funds or a PMS, and this is a satellite allocation on top.
This would be your first or largest equity allocation.
₹1 crore is a modest share of your investible surplus — commonly 5% to 15% for a family office.
You may need the money within five years, for any reason.
You can fund capital calls on demand for three to four years without stress.
Committing to fund future calls on demand would leave you uncomfortable.
You can accept a reported value below cost for two or three years without changing your mind.
You want to see a daily or monthly value you can rely on — unlisted holdings are valued periodically and are estimates.
You want exposure to unlisted businesses that no public scheme can give you.
Cost matters most to you — fees and carry in an AIF are materially higher than any fund or PMS.
You have a CA and a lawyer who will read the PPM and Contribution Agreement properly.
You would rather invest monthly and increase it as your income grows.
We are a distributor. We do not manage money, and we are not the sponsor, manager, trustee or issuer of either fund.
A scheme of SMC Alternate Investment Trust · Investment Manager: SMC Global Securities Ltd. · SEBI Reg. IN/AIF3/23-24/1455
A sector-agnostic strategy investing in equity, debt and other permitted instruments across primary and secondary markets, with a focus on opportunities arising from IPOs, pre-IPO placements, QIPs and corporate actions such as buybacks, open offers, demergers and mergers. Selection runs off an in-house bottom-up research process screening on revenue and volume growth, margins, return on capital and cash generation.
Classes of units, fee structure, lock-in, exit terms and NAV history are set out in the Private Placement Memorandum.
First scheme offering · SEBI-registered Category II AIF · Registration number to be confirmed
Hybrid growth capital for profitable, growth-stage businesses in Indian consumption, consumer technology, SME enablement, fintech and AI-enabled sectors. A concentrated portfolio built over three to four years with capital released against milestones, alongside operating support — and exits pursued through secondaries, strategic sales, buybacks and IPO routes rather than a single binary outcome.
Target fund size, fee structure, hurdle, carry, tenure and drawdown schedule are set out in the Private Placement Memorandum.
The scheme detail template for the private layer — served only to a logged-in investor who has confirmed eligibility and asked for it
Category III AIF · IN/AIF3/23-24/1455 · scheme of SMC Alternate Investment Trust)
Past performance is not indicative of future results and no return is assured or guaranteed. Figures reproduced from the Investment Manager's scheme presentation dated 15 May 2026, as on the dates stated. The scheme offers other classes of units not shown. This summary is qualified in its entirety by the Private Placement Memorandum and Contribution Agreement, which must be read before any investment decision.
Category II AIF · growth-stage hybrid capital · consumption, SME and mid-market)
The target multiple is the Investment Manager's stated objective. It is not a forecast, a projection or a guarantee, and it is not our claim. A Category II AIF invests substantially in unlisted securities. Capital is at risk and a total loss is possible. Figures reproduced from the manager's investor teaser and subject to the final Private Placement Memorandum, which prevails over any inconsistency.
“3–5× target exit multiple” and “12% IRR hurdle” are PriQuant's own words from their teaser. On the gated layer, to an eligible investor who asked for it, with the disclaimer above, they are reproducible. They must never appear on the public layer, in a WhatsApp broadcast, on social media, or in any email to a list. A target multiple shown to a general audience reads as a promised return, and that is precisely where distributors get into trouble.
Management fee, hurdle, catch-up and carried interest sit between a fund's gross outcome and yours. Most investors see a target multiple and assume it is theirs. Move the sliders and see what reaches you.
What reaches you, net of everything
Net IRR to you of about 16.2% a year over 5 years
A gross 2.5× is about 20.1% a year gross, and reaches you roughly 16.2% a year net. Fees and carry absorb ₹38.00 L of the ₹1.40 Cr gross gain.
Simplified illustration for understanding fund economics. Assumes a European whole-of-fund waterfall with a full catch-up, management fee charged on committed capital across the fund's life, and carry computed on profit after fees. Real funds differ: fees may step down after the investment period, the hurdle may be simple or compounded, catch-up may be partial, and clawback, operating-expense caps, GST and taxes all change the outcome. The gross multiple is a figure you have chosen — it is not a forecast, a projection, or a return anyone has offered. The Private Placement Memorandum governs the actual computation in every case.
Typically three to six weeks from first conversation to units allotted.
Whether the ₹1 crore minimum works for you, and whether an AIF is right at all. This is where we say no if we should.
The manager sends the PPM, Contribution Agreement and presentation directly, on a confidential basis.
Read the PPM properly. Have your CA and lawyer review the tax position, the drawdown obligation and the default clause.
KYC, Contribution Agreement execution, and your first drawdown notice from the manager.
Periodic reports and annual statements from the manager and RTA, plus further drawdown notices. We help you read them.
You should not have to take our word for any of it — and in a product this opaque, you especially should not.
Every AIF's registration can be checked against SEBI's public list of registered Alternative Investment Funds. SMC India Opportunities Fund is a scheme of SMC Alternate Investment Trust under IN/AIF3/23-24/1455. If a registration number cannot be verified, walk away — from us included.
SEBI requires AIFs to report performance to a benchmarking agency, which publishes standardised industry benchmarks by category and vintage. Ask any manager for their benchmarking report and compare it against peers of the same vintage — not against a factsheet, including one we send you.
Category II and III AIFs must issue a Private Placement Memorandum in SEBI's template and have compliance with it audited annually. Ask for the PPM audit report. A manager who is comfortable handing it over is telling you something useful.
Partners usually ask
It's a zero-investment program that lets you refer clients to buy or sell unlisted and pre-IPO shares through our platform, and earn commission on every closed deal.
No. Signing up, verification and access to the partner dashboard are completely free — there's no upfront cost at any stage.
Commission is calculated on completed deals and paid out fortnightly directly to your registered bank account.
No prior experience is required. Our research reports and RM support are designed to help you guide clients confidently from day one.
Anyone with a network of potential investors — financial advisors, brokers, or individuals looking to build a second income stream — can apply.
Tell us a little about what you are looking for. If an AIF fits, we will arrange the Private Placement Memorandum and a call with the manager. If it does not, we will say so and point you somewhere better.
We Grow Wealth Pvt. Ltd. acts as a distributor of Alternative Investment Fund schemes. We are not the sponsor, investment manager, trustee or issuer of any scheme, and we do not manage, hold or have access to investor funds or units.
We are not a SEBI-registered Investment Adviser and do not provide investment advice or financial planning for a fee. Nothing on this page is a recommendation to invest in any scheme.
Office: Majestic Signia Tower, Office No. 3, 8th Floor, A-27A, Sector 62, Noida, Uttar Pradesh. Mon–Sat, 9:00–18:30.
Mutual fund distribution services referred to elsewhere on this website are provided by SMG Financial Services, a partnership firm holding AMFI Registration Number ARN-338796 and associated with We Grow Wealth Pvt. Ltd.