Exhilway Launches India’s First AIF Unit Scheme

Exhilway has launched a smaller variant of SME VIVO - I which was specifically designed for the high net worth investors.

New Delhi (I-Newswire) January 11, 2013 - Exhilway Private Capital Market (EPCM), India’s first secondary market for the unlisted companies to directly raise money from the private equity (PE) investors has launched Alternative Investment Fund (AIF) Units just a week after the launch of SME VIVO - I AIF scheme designed for the high net worth investors (HNIs).

The SME VIVO - I HNI scheme targets only the rich investors with the minimum investment pocket of US $1,85,000 OR INR 1 crore. The key reasons the investors are preferring to invest in this fund is the capital protection which is being offered along with the 25% minimum guaranteed return, in case the fund fails to perform or generates negative returns. The fund is underwritten by Denmark based PE equity called Deberry Ventures.

SME VIVO - I is 61% subscribed after its launch on 31st December, 2012 as per the information released by the EPCM officials last week. The blockbuster investor oriented investment scheme will appoint over 1900 independent financial advisors to sell both the AIF variants in the smaller towns and cities.

“AIF Units is only a smaller version of the SME VIVO - I primary fund, it is a fund of fund scheme where AIF units will raise money from the small or medium sized investors looking out to exercise investment options other than fixed deposits or mutual funds. The fund will offer capital protection and 25% guaranteed return similar to the main fund designed for HNIs. The minimum entry size for the AIF Units will be mere US $1860 or INR 1 lakh”, said Vishwas Kumar Mittal, Fund Distribution Manager, EPCM.

The AIF units are engineered to benefit the small to mid sized investors who are losing interest investing in mutual funds and fixed deposits. The HNIs and the small investors have few options other than stock market for the investment. The directionless stock market will attract more investors towards AIF products.

“I used to invest in mutual funds with the hope that I will generate an inflation beating return, unfortunately my entire portfolio is running into minor losses even after staying invested for over two years. As an investor I am no longer interested in putting my money at risk, I need principal safety followed by an inflation beating return,” said Manoj Jain, a employee of Infosys, Pune.

AIFs are being regarded as the next best investment opportunity after fixed deposits and mutual funds. The AIF Units and the SME VIVO - I are open to the world for subscription, the company is specifically targeting Gulf & UK based investors.