AIFs are categorized into three types based on investment strategy:
- Category I AIF: Invests in socially or economically desirable sectors like infrastructure or social ventures.
- Category II AIF: Includes private equity funds and debt funds that do not take leverage or borrow.
- Category III AIF: Includes hedge funds that use complex trading strategies, including leverage.
Treelife assists in setting up all types of AIFs as per SEBI norms.