Explanation – Alternative Investment Funds (AIFs) differ from traditional mutual funds in several ways, with one key difference being the wider range of asset classes in which AIFs can invest. These may include private equity, venture capital, hedge funds, real estate, infrastructure, and other alternative assets that are not typically accessible through traditional mutual funds. AIFs often employ more sophisticated investment strategies and have higher minimum investment requirements than traditional mutual funds. They are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012.

Source: The Hindu