Understand the Categories and Risks
Alternative Investment Funds
Alternative Investment Funds can use private-market and complex strategies. Their documents, eligibility, liquidity, fees and potential for capital loss need careful review before any decision. Ask which provider and category are available for your circumstances.
AIF Investment Categories
An introduction to AIF categories. Individual funds can differ materially in strategy, eligibility, costs and risk.
Venture Capital Funds (Category I)
Venture capital funds may invest in early-stage businesses. Such investments can be difficult to value or exit and can result in substantial loss. Review the particular fund's documents and strategy.
Angel Funds (Category I)
Angel funds focus on young businesses and have specific investor and investment rules. Eligibility, commitment size, lock-in and loss risk must be checked against current fund documents.
Infrastructure Funds (Category I)
Infrastructure funds may invest in businesses or projects connected to infrastructure. Project, financing, policy and liquidity risks vary; returns are not assured by the category or by government initiatives.
Private Equity Funds (Category II)
Private equity funds may hold interests in unlisted companies. Their investment horizon, valuation approach, fees and exit terms vary by fund and should be reviewed before committing capital.
Debt Funds (Category II)
AIF debt funds may invest in private credit or other debt instruments. Credit defaults, concentration and liquidity can cause loss; the word debt does not mean a fixed or guaranteed return.
Hedge Funds (Category III)
Some Category III funds use trading, derivatives or other complex strategies. Strategy, leverage, costs and exposure vary. Their performance can be negative in any market direction.
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