Long-only equity
Builds a portfolio of listed shares based on the manager's investment mandate and research process.
What to review: Stock selection, concentration and market risk
Market strategies · Category III
Category III AIF in India
Explore listed equity, long-short, PIPE and hybrid funds. Compare mandates, liquidity and risks before considering a Category III AIF.
What Is a Category III AIF?
One regulatory category. Different market strategies.
A Category III AIF is a pooled investment vehicle whose scheme may use diverse or complex trading strategies. Its actual investments, use of derivatives and risk limits depend on the fund documents.
Mid-cap, small-cap and micro-cap describe company size, while long-only, long-short, PIPE and hybrid describe investment approaches. Market-cap exposure depends on each scheme's mandate.
- Mandate
- Funds may focus on long-only equity, long-short, PIPE or hybrid opportunities.
- Exposure
- Gross and net exposure, hedging and leverage vary by scheme and should be checked in current disclosures.
- Investor risk
- Returns and capital are not guaranteed. Market, strategy and liquidity risks can lead to losses.
Category III AIF Investment Strategies
Long-short equity
Combines long positions with short exposure or hedges where permitted by the scheme documents.
What to review: Net exposure, hedging cost and derivatives risk
PIPE and special situations
Seeks opportunities in public equity, negotiated transactions or company-specific events.
What to review: Deal terms, valuation and exit liquidity
Hybrid strategies
May combine equity with other permitted assets, including credit, according to the scheme mandate.
What to review: Asset mix, credit quality and allocation changes
Explore Category III AIF Funds
Category
AIF Category III
Browse the funds below and explore each scheme in detail.
360 ONE Equity Opportunity Fund - Series 4360 ONE PIPE Fund - Series 2Ampersand Growth Opportunities FundICICI Alpha Opportunities FundICICI Emerging Leaders FundICICI Equity Opportunities FundICICI Prudential Growth Leaders FundICICI Prudential PIPE FundMotilal HEMSHAMotilal Oswal Founder FundMotilal Oswal Mid to MegaMotilal Oswal Value Migration FundNippon Undiscovered India OpportunitySBI Optimal Equity FundSundaram AlphaBet Fund - Series ISundaram Alternatives Opportunities Fund - ATLASTata Absolute Return FundTata Equity Plus Absolute Return Fund
Fund classification and subscription availability are subject to the latest official scheme documents.
Explore Strategy Types
Listed equity
Managers may invest in selected listed companies, including mid-cap, small-cap or micro-cap businesses where the scheme mandate permits. Market-cap focus does not determine the AIF category; check each fund's current documents.
Long-short and absolute return
These mandates may adjust equity exposure or use hedges. A lower target for market sensitivity does not remove losses or guarantee a positive return.
PIPE opportunities
PIPE mandates examine listed companies and transaction-led opportunities. Investors should review deal concentration and the route to exit.
Hybrid allocation
A hybrid mandate can hold more than one type of asset. The latest PPM explains allocation limits, risk controls and liquidity.
Long-only vs Long-short AIFs
| Factor | Long-only equity | Long-short equity |
|---|---|---|
| Core approach | Buys selected securities | Combines long positions with short positions or hedges |
| Market sensitivity | Typically rises and falls with held stocks | Depends on net exposure and hedge effectiveness |
| Key risks | Stock selection, concentration and market declines | Stock selection, short positions, derivatives and basis risk |
| What to check | Portfolio concentration and valuation discipline | Gross/net exposure, risk limits and hedging cost |
How to Evaluate Category III AIF Funds
Compare funds using the same questions, then review the latest PPM and manager disclosures for the answers:
- Mandate: eligible assets, strategy, investment limits and any mid-cap, small-cap or micro-cap focus.
- Exposure: gross and net positions, leverage and derivatives use.
- Manager: relevant experience and results across market conditions.
- Economics: fees, expenses, carry and tax treatment.
- Risk controls: concentration, hedging, liquidity and valuation.
- Exit terms: dealing frequency, notice, lock-in and redemption rules.
Eligibility, Investment Horizon and Liquidity
Category III AIFs are intended for eligible investors who can assess the scheme's strategy and risks. A fund may be open-ended or close-ended. Minimum commitment, lock-in, redemption windows, notice periods and exit charges depend on current rules and the scheme documents. HNI and NRI investors should check eligibility, KYC, tax and suitability before investing.
Risks of Category III AIF Investments
Market risk
Listed securities can lose value, including during broad market declines.
Strategy risk
Short positions, hedges or derivatives can behave differently from expectations.
Concentration
A small number of positions or themes can have an outsized effect.
Liquidity
Exit terms and market conditions may delay or limit redemptions.
Costs and tax
Fees, trading costs and scheme-specific tax treatment affect net returns.
Category III AIFs are regulated by SEBI, but investors can still lose some or all of their invested capital.
Frequently Asked Questions
Discuss Category III AIF options
Tell us your investment horizon and preferred strategy. We can help you compare available fund documents and suitability considerations.
Enquire about AIFsSources and important information
SEBI reference: AIF Regulations (July 2026).
Check the latest PPM and manager documents for each fund's registration, fees, liquidity and risks. Educational only; not investment advice. Capital is at risk; past returns do not guarantee future results.