Why is it in the news ?
- Government has approved the creation of Alternative Investment Fund (AIF) worth Rs 25,000 crore.
- The fund is to provide relief to developers with unfinished projects to ensure delivery of homes to buyers.
More in the news
- Need: As per the government data, around 4.58 lakh housing units were stuck in India with over 1,600 realty projects stalled.
- Management: SBICAP Ventures will be the investment manager for the fund.
- Expected Outcome: The decisions will help relieve financial stress faced by large number of middle-class homebuyers who have invested their hard-earned money.
- The funds will be set upas Category-II Alternative Investment Fund registeredwith the Securities and Exchange Board of India.
- Alternative Investment Fund (AIF):
(1) The name Alternative is vital as it shows the entities specified as AIFs are not like the traditional institutions ”“ mutual funds, pension funds, insurance companies etc.
(2) Anything alternate to traditional form of investments can be categorized as alternative investments.
(3) AIFs refers to any privately pooled investment fund ”“ a trust or a company or a body corporate or an LLP (Limited Liability Partnership
- AIFs includes Private Equities, Venture Capital Fund, Hedge funds, Commodity funds, Debt Funds, infrastructure funds, etc.
Source
The Hindu.