AIF stands for Alternative Investment Fund, which is a privately pooled investment vehicle that collects funds from investors to invest in accordance with a defined policy. AIFs can invest in a variety of asset classes,
including:

• Private equity: Funds that invest in private businesses that are not listed on the stock exchange
• Debt funds: Funds that invest in debt instruments, such as corporate bonds, debentures, and other fixed-income securities
• Funds of funds: Funds that invest in other AIFs

Some other things to know about AIFs include:
AIFs are a pooled vehicle, so investors at the same closure have similar returns. Tax implications vary by AIF category.
Individuals and companies can set up an AIF if they meet the regulatory requirements set by SEBI.
AIFs are different from demat accounts, so investors do not need to open one to invest. Some examples of AIFs in India include: Avendus AIF, ITI AIF, ICICI Pru AIF, Tata AIF, and Alta Cura AIF.