AIF’s can be classified in to the following three categories


Category 1: (Venture Capital Funds) Start-up / Early stage funds, Infrastructure funds
These are those AIFs which are positive and beneficial to the Indian economy and enhance growth. Hence these funds receive incentives or concessions by SEBI or the government of India. Such funds generally invest in start-ups or early stage ventures, social ventures, SME’s, infrastructure or other sectors which are considered socially or economically important for the country.
Start up funds / early stage funds:
Venture Capital Fund falls under Category 1 of the AIF regulations and is an investment fund that manages money from investors seeking private equity stakes in start-up and small and medium-size enterprises that show strong growth potential. These investments are generally characterized as high-risk/high-return opportunities.
Infrastructure Funds:
The Indian economy requires huge investments in developing infrastructure like roads and power. Infrastructure funds channelize investments into these companies and thus make money for investors.
Private Equity funds (especially Real Estate PE funds) typically reduce the risk profile by offering diversified investment portfolios managed by experienced fund managers. Thus, it provides the dual benefit of a defensive investment alternative as well as a hedge mechanism by offering an alternative asset class.
These AIF’s are funds that undertake leverage to a great extent. These funds trade with a view to make short term returns.
AIF’s bring significant benefits to investment portfolios through diversifying exposure away from traditional fixed income and equity assets.
Classified under Category 3 of alternative investment funds, hedge funds are an aggressively managed portfolio of investments. Hedge Funds use several types of strategies such as leveraged, long, short and derivative positions in both domestic and international markets. Midas Touch has two hedge funds in India under the name 'Systematic Edge Fund' and ‘Arbitrage Opportunities Fund’.
Gold Exchange Traded Funds are close ended funds that track the gold prices in India. Gold is regarded as one of the best hedging tools – be it against inflation, currency, stocks or fixed income. Gold protects one’s portfolio from volatility against micro and macro-economic factors that tend to have significant impact on other asset classes, as they have virtually no or little impact on gold prices.
Resident Indians can invest in financial investments abroad under the Liberalized Remittance Scheme.
International investments can be done through various instruments:
International Funds and Feeder funds offered as mutual funds by the Indian Asset Management companies. Investments in Direct Equity and Bonds through an international broker. Investments in Structured Products through an international broker. Investment with Direct International Asset Management companies. Managed Futures
These investments can be made a part of the diversification strategy by adding positions of foreign equities and debt. Midas Touch Private Wealth can facilitate all of your international investments to bullet proof for your portfolio.