As per the NISM Series X-B workbook's comparison of Equity Mutual Funds, Portfolio Management Services (PMS), and Alternative Investment Funds (AIF) Category 3, what is the minimum investment size specified for an AIF Category 3 scheme?

[ A ]Rs. 1 crore[ CORRECT ]

[ B ]Rs. 50 lakhs

[ C ]Rs. 1,000

[ D ]Rs. 10 lakhs

Takeaway

Option A is correct: the workbook states the minimum investment size for an Alternative Investment Fund (AIF) Category 3 scheme is Rs. 1 crore.

Derivation

The workbook's comparison table shows escalating minimum investment thresholds matched to investor sophistication: Equity Mutual Funds can be entered with as little as Rs. 1,000, PMS requires a minimum of Rs. 50 lakhs (meant for high net worth investors), and AIF Category 3, meant for high net worth investors seeking complex or leveraged strategies, requires a minimum of Rs. 1 crore. A common error is swapping the PMS and AIF Category 3 minimums since both target high net worth investors.

Why the others fail

B — Rs. 50 lakhs

Rs. 50 lakhs is the minimum investment size specified for PMS, not AIF Category 3, per the workbook.

C — Rs. 1,000

Rs. 1,000 is cited as the minimum investment possible in an Equity Mutual Fund scheme, not an AIF Category 3.

D — Rs. 10 lakhs

This figure is not mentioned in the workbook's comparison; the three thresholds given are Rs. 1,000 (MF), Rs. 50 lakhs (PMS) and Rs. 1 crore (AIF Category 3).