Case for Investing in CAT 3 AIFs I PMS AIF WORLD talks RELIANCE AMC I Alternative Investment Funds I

Mr Kamal Manocha, Founder and Chief Strategist, PMS AIF WORLD
Mr Varun Goel, Head of Equity - AIF, Reliance AIF
0.35 - 0.42 - Could you please elaborate on SEBI's AIF Categories - Category I, II and III?
0.55 - 1.00 - Industry is almost 70-80k crore AUM and growing at very rapid pace.
1.15 - 1.22 - Categories vary basis the underlying asset class and the mandate of the fund
1.25 - 1.30 - Lot of Real estate funds are part of Cat I
1.35 - 1.40 - Private Equity and Venture Capital Funds are part of Cat II
1.55 - 1.58 - Listed Equity Funds are Cat III funds.
1.58 - 2.02 - Cat III can be long only, long short etc
2.30 - 2.42 - AIF is convenient in terms of taxation as all income comes in fund and is taxed at fund level itself
2.44 - 2.50 - Income is tax free in the hands of the investor ( Tax Paid at Fund Level )
2.58 - 3.05 - You can give money in AIF in drawdowns. In durations ranging from 6months to year
4.00 - 4.10 - If one wants to invest in Equities, why and how AIFs are better than MFs or PMSs?
4.18 - 4.23 - We believe that for long only equity, AIF is a great vehicle.
4.28 - 4.32 - Firstly, it gives you option to launch thematic products (e.g. Millennial Fund)
5.02 - 5.06 - Second it the operations ease in AIFs
5.15 - 5.20 - Thirdly, it is very tax convenient. Investors do not have to pay taxes separately
5.30 - 5.38 - It is a pooled investment vehicle
6.05 - 6.15 - AIF has best of both Mutual Fund which is a pooled vehicle and best of PMS which is a customised vehicle
6.45 - 6.55 - What as per SEBI is the drawdown mechanism for AIFs as minimum commitment is of 1cr?
8.23 - 8.28 - There is no fixed timeline of drawdowns from SEBI's
9.10 - 9.20 - How are you sharing information about your products with potential investors, given AIFs are private placement products?
9.38 - 9.45 - Reliance has been doing AIFs since 2012 (9-10 Products across categories )
10.20 - 10.25 - It’s important for investor to do the due diligence in all the parameters.
11.20 - 11.32 - Why are such products called Alternatives in context of one's portfolio and what should be the ideal allocation of these products?
11.55 - 12.05 - It’s important for client to sit with his Wealth Manager to ascertain the allocation of such products in his portfolio
12.20-12.40 -Investors can decide on asset classes and then decide the vehicle -MFs , PMS or AIF
12.55 - 13.05 - Investors who are more involved in their portfolio management decisions would prefer AIFs
13.55 - 14.00 - Lot of times, incremental Alpha is generated in Alternate products