The investors have an opportunity to register in these following categories and their subcategories:<\/em><\/strong><\/p>\n\n\n\n Generally, this category of individuals invests in early-stage ventures, small and medium enterprises (SME), startups, angel funds, infrastructure, and other sectors. These sectors are most economical as it has high growth potential.<\/p>\n\n\n\n Category I contains the following funds:<\/em><\/strong><\/p>\n\n\n\n Venture Capital Fund<\/strong><\/p>\n\n\n\n The primary purpose of the Venture Capital Fund<\/strong> <\/a>is to invest in Start-ups. They have huge potential but face issues to obtain the initial investments of the growth for their business. Since the entrepreneurs and new business face problems to raise funds through the capital market<\/a>, the venture capital funds work as a perfect medium to cope up with the initial financial needs.<\/p>\n\n\n\n Angle Fund<\/strong><\/p>\n\n\n\n It is similar to the Venture Capital fund, where managers together combine money from several angel investors and further invest them in the development of budding startups. Moreover, when the startups become profitable, an angle investor receives dividends or return on initial investments.<\/p>\n\n\n\n Social Venture Fund<\/strong><\/p>\n\n\n\n These companies aim to bring change in society to invest in companies which have strong social ethics. This led to the surfacing of the Social Venture Fund. This is often termed as a philanthropic investment. However, the investment in this fund provides a rate of return in the form of development of goodwill and reputation amongst stakeholders. Companies that have the Social Venture Fund will be generally engaged in carrying out Corporate Social Responsibility Obligations (CSR).<\/p>\n\n\n\n In this category, some investors specifically invest in debt securities and equity securities. No concessions are provided by the government to invest in these funds.<\/p>\n\n\n\n This category comprises of the following funds:<\/em><\/strong><\/p>\n\n\n\n Private equity fund<\/strong><\/p>\n\n\n\n This fund generally invests in unlisted private companies and obtains a share in their ownership. Since private equity cannot obtain capital through the issuance of equity, they are dependent on the Private Equity fund<\/strong>[1]<\/strong><\/a><\/sup>.<\/p>\n\n\n\n Debt Fund <\/strong> <\/p>\n\n\n\n This fund principally invests in the debt instrument of the listed companies and also in unlisted companies.<\/p>\n\n\n\n Fund of Funds<\/strong><\/p>\n\n\n\n This fund is a combination of diverse alternative funds. The prime strategy of this fund is to invest in other Alternative Investment Fund and doesn’t rely on investing in a specific sector.<\/p>\n\n\n\n The major focus of this fund is to obtain short term returns. They use strategies such as margin trading, derivatives strategies, arbitrage derivatives etc. to fulfil the purpose of gaining short term capital goals.<\/p>\n\n\n\n Some examples of category funds are as follows:<\/em><\/strong><\/p>\n\n\n\n Hedge Fund<\/strong><\/p>\n\n\n\n This fund primarily invests in international as well as domestic markets by pooling capital from the institutional investors as well as accredited investors.<\/p>\n\n\n\n Private Investment in Public Equity fund (PIPE)<\/strong><\/p>\n\n\n\n PIPE is the pool of funds that are privately sourced and managed. The main purpose of this fund is to purchase publicly traded stocks at a discounted price.<\/p>\n\n\n\n![\"Alternative](\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/10\/image001-10.png\")
<\/figure>\n\n\n\nCategory I<\/h2>\n\n\n\n
Category II <\/h2>\n\n\n\n
Category III<\/h2>\n\n\n\n
Disclosure Standards for Alternative Investment Funds<\/h2>\n\n\n\n
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