The full form of AIF is Alternative Investment Fund

An alternative investment is a financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Alternative investments include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.

Alternative investments are alternatives to so-called ‘mainstream investments’: equities and fixed income. They include private capital, real estate, real assets and hedge funds. Investors increasingly use alternative strategies to help them achieve their return and diversification goals.