How to Identify the Best AIF in India
There's no official SEBI-published performance ranking for AIFs ā and SEBI specifically restricts funds from making promotional return claims. So instead of chasing "top 10" lists, serious investors evaluate funds on a consistent set of criteria:
1. SEBI RegistrationĀ ā Always verify a fund's registration number on the official SEBI website. A legitimateĀ SEBI registered AIFĀ will carry a number beginning with IN/AIF1/, IN/AIF2/, or IN/AIF3/, depending on its category.
2. Track Record, Not ProjectionsĀ ā Ask for realised, audited returns from the manager's prior funds, not forward-looking projections. How did the fund perform in genuinely difficult periods? Track record under stress tells you far more than a pitch deck.
3. Manager Quality Over Fund SizeĀ ā A large AUM doesn't automatically mean better outcomes. Smaller, more disciplined managers with proprietary deal flow often deliver stronger risk-adjusted results than larger, more generalist platforms.
4. Fee TransparencyĀ ā Most AIFs charge a management fee alongside a profit share (typically 12ā15% above an 8ā10% hurdle rate). Understand the full fee structure before committing, and be wary of any hidden charges.
5. Strategy AlignmentĀ ā The right fund depends entirely on your horizon, liquidity needs, and risk appetite. A Category II private credit fund and a Category III long-short equity fund solve very different problems for a portfolio.




















