Investment Fund classification clarifies regulatory eligibility and activities for Category I and Category II alternative investment funds. An Investment Fund is any fund formed in India as a trust, company, LLP or body corporate holding a certificate of registration as a Category I or Category II Alternative Investment Fund and regulated under the alternative investment fund regulatory framework. Category I funds target start-ups, SMEs and socially/economically viable projects (e.g., venture capital, SME, social venture, infrastructure, angel funds). Category II funds invest in equity and debt securities (e.g., private equity, debt funds, fund of funds).