Alternative Investment Funds (AIFs) are investment vehicles established in India that pool funds from sophisticated investors, both Indian and foreign, for investing in accordance with a defined investment policy. AIFs encompass a variety of investments outside the traditional asset classes of stocks, bonds, and cash, including private equity, hedge funds, venture capital, real estate, and other structured investment products. Alternative Investment Funds (AIFs) represent a dynamic and growing segment of the Indian financial market, offering investors opportunities to diversify their portfolios and achieve potentially higher returns. Governed by SEBI regulations, AIFs ensure transparency, professional management, and a structured investment approach, making them an attractive option for sophisticated investors willing to navigate the associated risks.