Plan your investment
What Our Plans Cover
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Investment across the fund's equit...
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Listed and
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Professional research and portfoli...
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Periodic valuation and investor re...
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Distributions as positions are rea...
Who Can Consider This Plan?
- Minimum commitment of ₹1 crore per investor, as regulated
- Indian resident individual, HUF, trust, company or NRI
- Completed KYC with the fund
- Ability to meet capital calls through the drawdown period
- Acceptance by the fund manager, which is discretionary
What May Not Be Covered?
- Daily liquidity
- Any guarantee of return
- Diversification comparable to a mutual fund
- Low fees — AIF costs are materially higher
- Control over individual holdings
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Equity-focused alternative investment funds invest in shares — listed, unlisted, or a combination. The structural advantage over a mutual fund is freedom: an AIF can concentrate more heavily, hold unlisted positions, and take illiquid stakes that mutual fund regulations restrict.
That freedom is the reason to consider one, and the reason to be careful. Concentration produces better outcomes when the manager is right and considerably worse ones when they are not, and an unlisted holding cannot be sold when a view changes.
The honest comparison is against a diversified equity mutual fund, which costs a fraction as much and provides daily liquidity. An equity AIF has to justify both the fee differential and the illiquidity, and many do not.
Who should consider it
Investors with substantial equity allocations seeking concentrated or unlisted exposure. Investors who have identified a manager whose approach genuinely requires the AIF structure.
Investors seeking straightforward equity growth are usually better served by mutual funds, at far lower cost with full liquidity.
Benefits
- Concentration levels mutual fund regulation does not permit
- Ability to hold unlisted and pre-IPO positions
- Longer holding periods without redemption pressure
- Access to managers running high-conviction strategies
- Freedom to take illiquid stakes where the opportunity warrants
- Alignment through carry structures in many funds
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- Investment across the fund's equity portfolio
- Listed and, where permitted, unlisted holdings
- Professional research and portfolio construction
- Periodic valuation and investor reporting
- Distributions as positions are realised
Not included
- Daily liquidity
- Any guarantee of return
- Diversification comparable to a mutual fund
- Low fees — AIF costs are materially higher
- Control over individual holdings
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We start with whether an AIF suits you at all A one-crore minimum, multi-year lock-ins and higher fees. If a mutual fund does the same job, we will say so.
- 2 Category and strategy matched to the objective Category I, II and III are genuinely different things. Choosing between them is the substantive decision.
- 3 Fees and terms read in full Management fee, carry, hurdle rate, catch-up and drawdown schedule. These vary enormously and compound over a fund's life.
- 4 Commitment and drawdown planned You commit capital that is called over time. Liquidity has to be arranged for calls you cannot decline.
- 5 Reporting tracked through the fund life Valuations are periodic and taxation differs by category. We keep the reporting straight through to wind-up.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Ask what the AIF structure allows that a mutual fund could not do. If there is no clear answer, the mutual fund is the better instrument.
- Concentration is the point and the risk. Understand the position sizing and what happens if the largest holdings disappoint.
- Unlisted positions cannot be exited when your view changes. Their valuation is also an estimate rather than a price.
- Fees compound against you. Compare net-of-fee returns against a low-cost diversified fund over a full cycle before concluding the structure adds value.
- Equity investments are subject to market risk, and concentrated portfolios carry materially more of it.
Documents required
- PAN card
- Aadhaar or other identity proof
- Address proof
- Demat account details
- Bank account proof
- Net worth or income evidence, where the fund requires it
- Completed KYC and contribution agreement
Frequently Asked Questions
Why choose an equity AIF over a mutual fund?
Only if the strategy genuinely requires it — concentration beyond mutual fund limits, unlisted holdings, or illiquid positions a daily-redemption fund could not take. If the answer is simply that the manager is good, a mutual fund gives you that at a fraction of the cost with full liquidity.
How concentrated can these funds be?
Considerably more than a mutual fund, which faces regulatory limits on single-stock and sector exposure. That concentration improves outcomes when the manager is right and worsens them when they are not, so position sizing within the fund is worth understanding.
What about unlisted holdings?
They cannot be sold when your view changes, and their valuation is a periodic estimate rather than a traded price. That illiquidity is the trade for accessing companies before they list, and it should be sized accordingly.
How do the fees compare?
Materially higher than mutual funds — a management fee plus carry on profits. Over a full cycle that differential is substantial, which is why net-of-fee comparison against a low-cost diversified fund is the honest test.
Is the higher return worth the illiquidity?
Sometimes, and it depends entirely on the manager and the strategy. What is certain is the cost and the illiquidity; the return is not. Equity investments carry market risk, and past performance does not indicate future results.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.