What is an Angel Fund?
Angel Fund is a sub-category of Venture Capital Fund under SEBI’s Alternative Investment Fund (AIF) regulations. It pools money from angel investors to invest in early-stage startups with high growth potential.
Key Features of Angel Funds
- Registered with SEBI under AIF Category I
- Focuses on early-stage startups and innovation
- Operated by professional fund managers or angel networks
- Thorough due diligence and portfolio monitoring
- Typical lock-in period: 3 to 5 years
Why Invest in Angel Funds?
📈 Access to Startup Ecosystem
Participate in India’s fast-growing startup landscape.
📊 Portfolio Diversification
Reduce risk through a diversified basket of startups.
🧠 Professional Management
Invest through well-managed, SEBI-regulated funds.
💸 Tax Efficiency
May qualify for favorable capital gains tax under long-term holding.
Investor Eligibility
| Criteria | Requirement |
|---|
| Net Worth | Minimum ₹2 Crores |
| Minimum Investment | ₹25 Lakhs |
| Ideal For | HNIs, Family Offices, Professionals |
| Lock-in Period | 3–5 years |
How Angel Funds Work
- Fundraising from accredited angel investors
- Startup screening and evaluation
- Capital deployment into shortlisted startups
- Active mentoring and portfolio management
- Exit through IPOs, acquisitions, or secondary sales
Advantages for Startups
- Smart Capital with strategic guidance
- Higher credibility through fund validation
- Mentoring and early market access
Regulatory Highlights
- SEBI-regulated under AIF Category I
- Fund corpus: up to ₹25 crores
- Investment per startup: ₹25 lakhs – ₹5 crores
- Minimum 3-year lock-in
Why Choose Us?
- Access to top-performing SEBI-registered angel funds
- Thorough vetting of startup portfolios
- Dedicated support for onboarding and monitoring
- Transparent reporting and risk management
Documentation Required
- PAN & Aadhaar (KYC)
- Net worth declaration
- Investment commitment form
- Bank and Demat details
- FATCA declaration (if applicable)
FAQs
Q: Is investing in angel funds risky?
Yes, but fund structure and diversification reduce exposure.
Q: Are returns guaranteed?
No, returns depend on startup success and exit opportunities.
Q: Can NRIs invest in angel funds?
Yes, subject to NRI investment rules and RBI compliance.
Q: What's the typical investment horizon?
Usually 3–7 years.
Talk to Our Angel Investment Advisors
“Be part of India’s innovation story by investing early in tomorrow’s unicorns.”
Let us guide you through a strategic and rewarding angel investing journey.
Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.
