Alternative strategies · India · reviewed 8 September 2026

Three sophisticated routes. One simple explanation.

Click AIF, GIFT City Funds or SIF to understand what it is, who can invest, the minimum amount, how investment happens, Indian taxation, real-world tax examples, risk, liquidity and the investment words that usually make these products harder than they need to be.

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Each section is clickable

Underpitch works with Altport Funds for AIF and GIFT City access, and IIFL Capital for SIF. The guides are educational; the current product document controls the actual terms.

AIFUnderpitch × Altport Funds

Alternative Investment Funds

Privately pooled funds for sophisticated investors. Depending on category, they can invest in venture capital, private equity, private credit, real estate-linked opportunities or complex listed-market strategies.

Minimum: Standard domestic AIF minimum is generally ₹1 crore per investor.Tax: Category I/II can have pass-through tax; Category III can differ materially.Liquidity: Often limited; Cat I/II are commonly long-horizon, close-ended structures.

Open AIF guide →

GIFTUnderpitch × Altport Funds

GIFT City Funds

IFSCA-regulated fund structures in GIFT IFSC that can provide international or India-focused exposure through an international financial-services framework.

Minimum: No single universal minimum; many Altport-listed restricted funds currently show USD 150,000.LRS: Resident individuals can use permitted LRS remittances; annual limit is USD 250,000.Tax: Vehicle, investor residency and income type matter; TCS on LRS is not the final tax.

Open GIFT City guide →

SIFUnderpitch × IIFL Capital

Specialized Investment Funds

A SEBI-regulated product under the mutual-fund framework that sits between traditional mutual funds and PMS/AIF in strategy flexibility and investor sophistication.

Minimum: ₹10 lakh aggregate at PAN level across strategies of the same SIF; accredited investors are exempt.Strategy: Can use derivatives and permitted unhedged short exposure within SEBI limits.Tax: Depends on whether the strategy qualifies as equity-oriented, debt-heavy or another category.

Open SIF guide →

Fast comparison

Do not compare these only by returns

Minimum investment, tax character, liquidity and complexity can be more important than a past performance number.

AIFHighest domestic entry ticket

Suitable only after understanding capital calls, lock-ins, portfolio valuation, fees, tax pass-through and strategy-specific risks.

GIFT CityCross-border rules matter

Eligibility, currency, LRS, TCS, fund domicile, tax memo and redemption terms must be checked fund by fund.

SIFLower entry, higher strategy flexibility

The ₹10 lakh threshold is far lower than a standard AIF, but SIFs can still carry complex derivative, short-position and liquidity risks.

Plain-English words you will see across these products

Pass-throughThe fund passes the character of certain income to you for tax. Example: if eligible AIF income is interest, you may be taxed as though you earned that interest directly.

LeverageUsing borrowing or derivatives so the economic exposure is larger than the cash invested. It can magnify both gains and losses.

LRSLiberalised Remittance Scheme. RBI's route allowing a resident individual to remit up to USD 250,000 in a financial year for permitted transactions, including eligible investments.

TCSTax Collected at Source. For many investment-purpose LRS remittances, the bank collects 20% on the amount above ₹10 lakh. It is normally a tax credit, not an extra final tax by itself.

STCGShort-Term Capital Gain: profit on an asset held for less than the long-term holding period applicable to that asset.

LTCGLong-Term Capital Gain: profit after meeting the applicable long-term holding period. The rate depends on the asset and section of the Income-tax Act.

IndexationAn inflation adjustment to the purchase cost before calculating gain. Under current rules it is unavailable for most long-term transfers after 23 July 2024, subject to limited exceptions such as certain old land/building cases.

Capital callAn AIF may not take your entire committed amount on day one. It can ask you to contribute portions later as investments are identified.