Difference between AIF and MF

Back

 

Legal structure
AIF

An AIF can be a trust/company/limited Liability partnership/body corporate Incorporated in India

MF

A MF is incorporates as a trust Which has sponsor, trustees, asset Management company (AMC) and custodian

Manager/Sponsor
AIF

It can be the same entity

MF

Sponsor is different from the manager and has to contribute minimum 40% of the net worth of the asset Management company

Minimum net worth
AIF

No minimum limit is specified

MF

Rs 500 million

Fees
AIF

No regulation on fees. Freedom to charge any fees

MF

Fee structure called as total expense Ratio is regulated by SEBI

Minimum corpus
AIF

Rs 200 million

MF

No such requirement.

Minimum investment required by investor
AIF

Rs 10 million and if investors are employees/directors Of AIF then Rs 2.5 million

MF

No minimum limit

Registration
AIF

An AIF can register under any of the 3 categories specified by SEBI

MF

3 tier structure of trustees, sponsor AMC to be registered with SEBI

Fund type
AIF

Category 1 and 2 have to be closed ended only. Category 3 can be either open or closed ended

MF

It can be either open ended or closed Ended or an interval type of fund

Minimum tenure
AIF

3 years and further extendable

MF

No minimum specified

Maximum number of Investors
AIF

1000 per scheme

MF

Not specified

Issue process
AIF

Only through private placement

MF

Through public issue

Declaration of Net asset value (NAV) Of scheme
AIF

Minimum quarterly

MF

Daily in case of open ended schemes

Draw down
AIF

Structure specified in each scheme

MF

Not applicable

Target scheme returns
AIF

As per practice, most schemes specify a target IRR (Internal rate of return)

MF

Not applicable

Redemption
AIF

Only on scheme closure as it is closed ended

MF

Daily in case of open ended schemes

+91-22-28583333
Nucleus House, Saki Vihar Road, Andheri (E), Mumbai - 400 072.

Interested

I am Interested because...