Context: Alternative Investment Funds
Securities and Exchange Board of India has amended rules for Alternative Investment Funds by reducing the minimum investment in social impact funds from ₹2 lakh to ₹1,000 to increase retail participation in the Social Stock Exchange.
What is Alternative Investment Fund (AIF)
An AIF is a pooled investment vehicle regulated by SEBI that collects money from investors and invests in non-traditional assets such as startups, private equity, infrastructure, or social enterprises, unlike mutual funds.
What are Social Impact Funds
Social Impact Funds are a category of AIFs that invest in social enterprises and non-profit organisations (NPOs) with the objective of generating measurable social impact (education, health, poverty reduction) along with financial sustainability.
Core Change
Minimum investment in social impact AIFs reduced to ₹1,000, making them accessible to small/retail investors.
