SEBI AIFs — Cat I, II, III
You write one cheque, pros pick the deals. ₹1 crore minimum, 7–10 year lock-in. Tax pass-through (Cat I/II) means returns flow at LP's tax rate.
A SEBI-regulated Alternative Investment Fund (AIF) is a pooled vehicle where you commit capital as a Limited Partner (LP) and professional managers deploy it across a portfolio of companies. Unlike angel platforms where you pick individual deals, here you back the manager's judgment for the entire fund vintage. One cheque, one lock-in, a portfolio.
Cat I = VC funds · Cat II = PE/growth · Cat III = hedge. SEBI's numbering, not ours.
Each category differs by investment mandate, lock-in, and how gains are taxed. Cat I/II pass gains through to you at your LP rate; Cat III taxes at fund level first. The ₹1 crore minimum is SEBI-mandated across all three.
⭐ Cat I picks · Venture capital funds
Early-stage portfolios. 7–10 year lock-in. Gains flow through to you at your LP tax rate. All three accept NRE/NRO.
⭐ Cat II picks · PE & growth funds
Growth stage to pre-IPO. 2–10 year holds. Pick Cat II when you have sector conviction or want a shorter exit window than Cat I.
⭐ Cat III picks · Hedge & absolute return
More liquid than Cat I/II — monthly or quarterly redemption. Gains taxed at fund level before you receive them. Use for the liquid sleeve.
For first-time AIF NRIs, start with Blume Cat I. Add Avendus Cat III for liquidity.
Blume's seed-stage focus + 7-year lock-in matches typical NRI risk appetite — write one ₹1cr LP cheque and let it ride. Add Avendus's quarterly-redemption Cat III for the liquid sleeve. Skip Cat II PE unless you can lock in ₹3cr+ across 2-3 funds.
How we got there
We compared 8 SEBI AIFs on min ticket, lock-in, vintage IRR, and NRE/NRO accessibility. Three patterns matter:
→ Blume Ventures Fund V (Cat I)
7-year lock-in matches the natural startup cycle. Blume's seed-stage portfolio (Slice, Razorpay early days, Unacademy Series A) shows top-quartile IRR in their earlier funds. ₹1cr min — write one LP cheque, hold 7-10 years.
→ Avendus Absolute Return (Cat III)
Long-short equity strategy. Quarterly redemption gives you a way out if your situation changes. Pair with a Cat I VC fund for the illiquid sleeve.
→ Tata Capital Healthcare or Kotak Pre-IPO
If you have sector conviction (healthcare booming) or want shorter hold (2-4 years to IPO exit), pick one of these. Lower IRR upside than Cat I VC but more predictable timing.
Common questions
Detailed answers on our Q&A page.