Founder, Underpitch · Source review includes AMFI, SEBI, NSE, RBI, IRDAI, exchange, company or insurer documents where relevant.
2 July 2026
For most standard AIF schemes, the regulatory minimum investment per investor is generally ₹1 crore. Current regulations contain exceptions for specified investors or fund types, and scheme documents may require more. An investor must also be able to meet future capital calls, tolerate illiquidity and understand that the full commitment may remain exposed for several years.
Key points
- Minimum investment is not the same as the maximum potential capital call.
- Joint-investor, employee/director and special fund rules can differ.
- Accreditation or wealth alone does not make a strategy suitable.
- Verify the latest regulation and placement memorandum before committing.
Commitment versus contribution
An investor may sign a commitment for a total amount and contribute it in stages when the manager issues capital calls. Cash-flow planning must consider the full commitment, not only the first instalment.
General threshold and exceptions
The standard AIF framework has generally required at least ₹1 crore per investor, with specified exceptions such as lower thresholds for eligible employees or directors and special rules for certain fund structures. Amendments can change exceptions, so the current regulation and scheme documents must be checked.
Suitability beyond eligibility
An investor should have sufficient liquid wealth outside the AIF, understand the fund’s tenure, be able to fund calls during poor markets and accept that distributions may arrive later than projected.
Worked Indian example
An investor commits ₹1 crore to a private-equity AIF but initially contributes only ₹25 lakh. A later capital call arrives during a business slowdown. If the remaining ₹75 lakh was not kept available, the investor may breach contractual obligations or be forced to sell other assets at a bad time.
Comparison table
| Question | Why it matters | Document to check |
|---|---|---|
| What is the minimum commitment? | Determines eligibility and concentration | Current AIF regulations and PPM |
| How are capital calls made? | Creates future liquidity obligations | Contribution agreement |
| What is the tenure? | Money may be inaccessible for years | PPM and fund documents |
| Can units be transferred? | Secondary exits can be restricted | Transfer provisions |
| What are default consequences? | Missing calls can lead to penalties or loss of rights | Contribution agreement |
Do not rely on a verbal description of minimum investment or liquidity.
Risks and limitations
- Committing too much can create a personal liquidity crisis.
- Fund tenure can be extended or exits delayed.
- Minimum eligibility does not indicate risk tolerance or suitability.
- Regulatory exceptions and product terms can change.
Frequently asked questions
Is ₹1 crore always paid on day one?
Not necessarily. Some funds use commitments and capital calls, while others may require a different schedule.
Can an NRI invest in an AIF?
AIFs may accept eligible resident, non-resident and foreign investors subject to current law, KYC, tax and scheme conditions.
Does being an accredited investor remove risk?
No. Accreditation concerns eligibility or sophistication, not investment safety.
Can the fund demand more than the committed amount?
The contractual commitment and documents define obligations. Read provisions on expenses, recycling and follow-on calls carefully.
Sources and methodology
Rules, thresholds and product terms can change. Verify the latest official material and product documents before relying on a figure.
This page is for education and product understanding. It is not a personalised investment, legal, tax, trading or buy/sell recommendation. Stocks, derivatives, PMS and AIFs can result in partial or total capital loss.