An insurance policy is a legal contract between the insurance company (the insurer) and the person, business, or any entity being insured. Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or their property. Generally, there are two types of insurance, Life Insurance and General Insurance. In General Insurance, all types of insurance comes except life. Health, Home, Business, Motor, and Travel insurance are few of the general insurance .
Alternative Investment Fund consists of pooled investment funds that invest in venture capital, private equity, hedge funds, managed futures, etc. Simply, AIF is an investment that differs from conventional investment methods such as stocks, debt securities, etc. Whether you are a foreign or non-resident Indian, you are allowed to invest in an AIF, provided you have the required funds to invest and are willing to bet on the unlisted and illiquid securities. There are three types of alternative investments which are aimed at different purposes.