How Does Leverage Turn ₹100 into ₹150 in AIFs? | aif | indianfinance

Leverage in AIFs: Ek Double-Edged Sword Jo Aapke Returns Ko Uda Ya Gira Sakta Hai! ⚔️📈Leverage in Alternative Investment Funds (AIFs) ek powerful tool hai — sahi istemal se returns boost ho sakte hain, lekin galat handling se massive losses bhi! 💡 Kya Hai Leverage?- Borrowing to Invest: Apne ₹100 ke saath ₹50 borrow karke ₹150 invest karna - Amplified Returns: Sahi bets par ₹100 behaves like ₹150 - Magnified Risks: Galat bets par losses bhi tezi se badhte hain AIF Categories & Leverage Rules1. Category I Funds (Venture Capital, Angel, Infrastructure): - Leverage Restricted: Sirf short-term operational needs ke liye allowed 2. Category II Funds (Private Equity, Debt AIFs): - Limited Leverage: 30 days borrowing, max 10% of corpus 3. Category III Funds (Hedge Fund-style): - Unrestricted Leverage: Borrow, short-sell, derivatives → High-Risk, High-Return 🔥 Why Leverage Hai Risky?- Market Volatility: Wrong direction mein movement → big losses - Interest Costs: Borrowing cost eats into returns - Margin Calls: Forced selling at unfavorable prices Investor Takeaways- Know Your AIF Category: Leverage exposure varies wildly - Risk Appetite: Category III not for faint-hearted investors - Due Diligence: Understand fund strategy + leverage usage Kya Aap Leverage Ke Saath Comfortable Hain?- High returns ki possibility vs downside risk - AIF portfolio mein leverage ka role kya hona chahiye? - Comments mein apna perspective zaroor share karein! 💬 #aif #alternativeinvestmentfunds #leverage #investmentrisk #categoryiii #privateequity #hedgefunds #financialstrategy #riskmanagement #indianfinance #investmentplanning #wealthcreation