About Company
Axis Asset Management Company Limited
Axis is one of the leaders in managing a large portfolio of companies in public markets. they have demonstrated capability in portfolio construction, portfolio management, and strong performance across their offerings. the Axis team has sourced and invested in a number of unlisted companies across multiple sectors (e.g. NSE, SBI General, Bikaji Foods, Fab India, etc.) which have delivered superior business performance over a period of time. Due Diligence | Portfolio Selection | Portfolio Monitoring | Exits
What Is Axis Alternative Investment Fund – Category II?
The Axis Alternative Investment Fund – Category II is a SEBI-registered Category II AIF managed by Axis Asset Management Company Limited.
The fund is registered with SEBI under IN/AIF2/17-18/0512, with a registration date of 19 January 2018.
The structure operates through an AIF trust with multiple underlying investment schemes. Each scheme can pursue a distinct private-market strategy, allowing Axis AMC to manage different opportunity sets within the same Category II framework.
Category II AIFs are generally used for investment strategies that do not fall within Category I or Category III and typically invest in private-market opportunities such as private equity, credit, real estate and other alternative assets.
For Axis, the Category II platform includes strategies covering structured credit, growth equity and real estate, among other private-market opportunities.
The umbrella should therefore be viewed as an investment platform rather than a single strategy. Investors need to evaluate the specific Axis Category II scheme, its PPM, investment mandate, tenure, fees, commitment structure and risk factors before investing.
Axis Alternative Investment Fund – Category II: Snapshot
| Fund Parameter | Details |
| Fund Name | Axis Alternative Investment Fund – Category II |
| Category | Category II AIF |
| Investment Manager | Axis Asset Management Company Limited |
| SEBI Registration Number | IN/AIF2/17-18/0512 |
| Registration Date | 19 January 2018 |
| Structure | Trust with underlying schemes |
| Investment Focus | Private-market alternatives |
| Key Strategies | Private credit, structured debt, growth equity and real estate |
| Minimum Investment | ₹1 crore regulatory minimum, subject to applicable scheme terms |
| Tenure | Scheme-specific |
| Fees | Scheme-specific |
The applicable corpus, commitment structure, fees, tenure, exit provisions and other commercial terms are determined at the scheme level and should be reviewed in the relevant fund documents.
How Investors Subscribe: Trust, Schemes and Commitments
Investors do not simply subscribe to the Axis Category II umbrella as though it were a single pooled portfolio.
The investment process operates at the scheme level.
An investor first identifies the relevant Axis Category II strategy based on objectives, risk tolerance, investment horizon and preferred asset class. The applicable scheme's offering documents then establish the investment mandate, minimum commitment, corpus, drawdown structure, tenure, fees and exit provisions.
The relevant Private Placement Memorandum (PPM) is therefore the key document for understanding the investment being considered.
This structure is particularly important because an investor considering private credit and structured debt is evaluating a very different opportunity from an investor considering the Axis Commercial Real Estate Fund or a growth-equity strategy.
For example, Axis Structured Credit AIF – II represents a structured-credit strategy, while the Axis Commercial Real Estate Fund focuses on real-estate opportunities.
Investors evaluating growth-oriented private-market exposure can also review Axis Growth Avenues AIF – I to understand how an equity-oriented strategy differs from credit and real-estate-focused schemes.
Axis Alternative Investment Fund – Category II Minimum Investment and Fees
The regulatory minimum investment applicable to AIFs is generally ₹1 crore, subject to applicable regulatory provisions and exceptions.
However, the minimum commitment applicable to an individual Axis Category II scheme may depend on its specific offering documents.
Similarly, fees should be assessed scheme by scheme. Depending on the strategy, commercial terms may include management fees, performance-related fees, operating expenses and other applicable charges.
Investors should therefore avoid assuming that the fee structure or minimum commitment of one Axis Category II scheme applies to another.
The relevant PPM and subscription documents should be reviewed for:
- Minimum commitment
- Drawdown schedule
- Management fees
- Performance fees, where applicable
- Fund expenses
- Tenure
- Exit provisions
- Transfer restrictions
- Other scheme-specific charges
How Are Category II AIFs Taxed?
Category II AIFs generally receive pass-through treatment under Section 115UB, subject to the applicable provisions of the Income Tax Act.
Broadly, income generated by the AIF is generally allocated to investors and taxed in the investors' hands rather than being taxed at the fund level in the same manner as a Category III AIF.
The tax treatment can depend on the nature and character of the income generated by the underlying investment.
For example, income may have different tax consequences depending on whether it represents interest income, business income, capital gains or another category of income.
Distributions may also be subject to applicable tax deduction at source (TDS) requirements.
The important distinction for investors is that Category II and Category III AIFs operate under different tax frameworks. Investors should therefore assess the post-tax outcome, not simply the headline return or distribution. Investors comparing tax treatment across AIF structures can review AIF taxation by category before assessing the post-tax implications.
Tax rules can change, and the actual tax liability depends on the investor's circumstances and the nature of income generated by the relevant scheme. Independent tax advice should be obtained before investing.
Key Risks of Investing in Category II AIFs
Category II AIFs provide access to private-market opportunities, but this also creates a risk profile that can differ materially from listed-market investments.
Illiquidity Risk
Many Category II strategies invest in private-market assets that cannot be readily sold. Investors may need to remain invested until the scheme's stated exit or maturity provisions.
Closed-Ended Structure
Category II AIFs are commonly structured as closed-ended vehicles with multi-year investment horizons. Investors should consider whether they can commit capital for the required period.
Strategy Risk
The underlying risk depends heavily on the individual scheme. Credit, real estate, growth equity and other private-market strategies have different sources of return and risk.
Credit Risk
Credit-focused strategies are exposed to borrower quality, repayment capacity, collateral value, restructuring and default risk.
Real Estate Risk
Real-estate strategies can be affected by construction delays, approvals, property-market conditions, tenant demand, financing costs, execution and asset valuations.
Valuation Risk
Private and unlisted investments may not have continuously observable market prices. Valuations can therefore be subject to assumptions and periodic assessments.
Concentration Risk
A scheme may have exposure to a limited number of borrowers, companies, projects, sectors or geographies. Adverse developments affecting a significant holding can materially impact returns.
Key-Person and Execution Risk
Investment outcomes can depend on the experience and decision-making of the investment team as well as the execution capability of portfolio companies, borrowers or project partners.
Regulatory Risk
Changes in AIF regulations, taxation, financial-market rules or other applicable laws can affect the structure and economics of an investment.
Investors should always review the scheme-specific risk factors before making a commitment.
Who May Consider an Axis Category II AIF?
An Axis Category II AIF may be relevant for investors who:
- Can commit at least the applicable minimum investment
- Have a multi-year investment horizon
- Can tolerate limited liquidity
- Understand private-market investment risks
- Are comfortable with scheme-specific drawdown and exit structures
- Want exposure beyond traditional listed-market investments
- Can evaluate the risk associated with the particular underlying strategy
The appropriate scheme depends on the investor's objectives, portfolio allocation, liquidity requirements and risk tolerance.
A credit investor, for example, may have a very different suitability profile from an investor seeking real-estate or growth-equity exposure.
Explore Axis Alternative Investment Fund – Category II
Axis Alternative Investment Fund – Category II provides an umbrella structure for multiple private-market strategies across structured credit, real estate and growth-oriented investments.
For investors, the key consideration is not simply the Axis Category II label but which underlying scheme matches their investment objectives, risk tolerance and investment horizon.
Explore the opportunity and review the applicable scheme information on ALTPORT.
For further information about the relevant investment structure and applicable scheme details, contact our investment team.
Listen to expert conversations and investment insights anytime on Spotify.
Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.
Nachiket Naik
Nachiket Naik is Head – Structured Credit at Axis Asset Management Company Limited and leads the firm's structured-credit investment strategy. He joined Axis AMC in September 2024 and brings more than two decades of experience across corporate lending, structured finance and debt-market businesses. Before joining Axis AMC, Naik was a founding member and Head of Corporate Lending at Arka Fincap and was also a co-founder of IREP Credit Capital. His earlier experience includes roles with UBS, ABN AMRO, IL&FS and CARE. He holds an MBA from Symbiosis Institute of Business Management, Pune, and a Bachelor of Engineering from MIT Pune. His investment approach emphasises structured transactions, collateral quality, legal protections and disciplined risk management rather than simply pursuing the highest available yield.
View Profile →Chetan Shah
Chetan Shah is associated with Axis AMC's real-estate alternatives platform and has been involved in the development of the firm's commercial real-estate strategy. He has represented Axis AMC in connection with the fund's Chennai investment and has described the project as aligned with the strategy of acquiring clear-titled land in strategically located areas supported by appropriate approval frameworks. The Chennai Fintech City transaction illustrates the fund's approach of identifying development opportunities where location, infrastructure, approvals and commercial demand can support the creation of institutional-quality office assets.
View Profile →
Balaji Rao
He has three decades of experience working as a developer, banker, and fund manager in the real estate industry and has performed all tasks throughout the project life cycle. He is a Chartered Accountant with Rank, an IIM Calcutta MBA graduate, and a Fellow member of RICS. He began his real estate career with the Raheja Group, where he oversaw the sales and marketing efforts for all of the group’s national projects. He then started the mortgage business at Standard Chartered Bank before moving on to ANZ Grindlays Bank to lead the property vertical. When he created TCG’s Real estate platform in the new century, he was one of the pioneers for the PE sector. After that, he went on to serve on the Sun-Apollo Fund’s Investment Committee and lead Starwood Capital’s fund in India. His previous roles on the boards of L&T Realty Ltd. and L&T Seawoods Ltd. both included Independent Directorships. Approximately the course of his career, he has directed the development of over 10 million square feet of residential, commercial, and hotel space. He is now in charge of establishing and expanding the RE Fund platform at Axis Mutual Fund.
View Profile →Ashwin Patni
Ashwin Patni is Head – Products & Alternatives at Axis Asset Management Company Limited. He joined Axis AMC in 2010 as a Portfolio Manager in the PMS business and has approximately 16 years of investment-industry experience. His previous experience includes IDFC AMC, Standard Chartered and ICICI Bank, and he is an alumnus of NIT Surathkal. Ashwin was closely associated with the launch and positioning of the Growth Avenues strategy. At the time of the fund's final close, he described the investment thesis around ambitious founders, scalable asset-light models and businesses positioned to benefit from India's digital transformation.
View Profile →Our Investment Experts
Our experts will understand your goals, map the right strategy across AIFs, PMS, Mutual Funds and Wealth Solutions, and guide you through every step.
Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.
The Axis Category II platform includes schemes covering structured credit, growth-oriented private markets and real estate. Identified schemes include Axis Structured Credit AIF I and II, Axis Growth Avenues AIF-I, Axis Commercial Real Estate Fund, Axis RERA Opportunities Fund I and II, and Axis New Opportunities AIF Series II.
Investment is made at the scheme level. Each underlying scheme has its own PPM, investment mandate, corpus, tenure, fees, commitment structure and risk factors. Investors should select the relevant scheme based on their investment objectives and review its offering documents before subscribing.
Axis Asset Management Company Limited manages the Axis alternatives platform, with different investment professionals responsible for individual verticals. Structured credit is led by Nachiket Naik, while the real-estate platform is led by Chetan Shah and Balaji Rao. Ashwin Patni heads Products & Alternatives.
The regulatory minimum investment for an AIF is generally ₹1 crore, subject to applicable provisions. The actual minimum commitment for an Axis Category II scheme may differ and should be confirmed from the relevant scheme's PPM and subscription documents.
Fees are scheme-specific. Depending on the strategy, they may include management fees, performance-related fees and other applicable expenses. Investors should review the latest PPM and subscription documentation for the exact commercial terms applicable to the chosen scheme.
Category II AIFs are generally structured as closed-ended vehicles with a minimum tenure of three years, although the actual tenure and extension provisions are scheme-specific. Investors should review the relevant PPM for the applicable investment period, lock-in and exit provisions.
Category II AIFs generally receive pass-through treatment under Section 115UB, subject to applicable tax provisions. Income is generally taxable in the hands of investors according to its applicable character. TDS may apply to distributions. Investors should seek independent tax advice based on their individual circumstances.
Category I AIFs generally focus on sectors or activities considered socially or economically desirable under the regulations. Category II AIFs cover a broad range of private-market strategies such as private equity, credit and real estate. Category III AIFs can employ more complex trading strategies and may use leverage and derivatives subject to regulations. The taxation, liquidity and risk characteristics also differ across categories.
NRIs may be eligible to invest in AIFs subject to applicable regulations, FEMA requirements, fund eligibility criteria and the terms of the relevant scheme. Prospective NRI investors should confirm their eligibility and documentation requirements before investing.
Risks can include illiquidity, closed-ended investment periods, credit risk, real-estate and execution risk, valuation risk, concentration risk, key-person risk and regulatory risk. The actual risk profile depends on the underlying scheme and its investment strategy.
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