AIF Cat-III vs Retail IFSC Scheme: Which Structure Suits Your Ticket Size?

GIFT City funds reach investors through two broad structures: the IFSCA Retail Scheme (often called FME-Retail) and the Category-III AIF. They can hold similar underlying assets, yet they sit at opposite ends of the accessibility spectrum, and choosing the wrong one wastes either capital flexibility or eligibility headroom.

The retail scheme is the more democratic vehicle. Minimums commonly start around USD 5,000–10,000, eligibility is broad, and liquidity is typically weekly. It behaves much like a familiar open-ended mutual fund, wrapped in dollars and domiciled offshore.

The Category-III AIF is the HNI instrument. Minimum commitments commonly start at USD 150,000, investors must meet IFSCA suitability and accreditation thresholds, and liquidity is usually monthly, quarterly, or — for crossover and private-markets strategies — closed-ended with multi-year lockups.

In exchange for that friction, the AIF can run concentrated, less-constrained mandates: 25–40 stock portfolios, long/short books, pre-IPO crossover exposure, and private credit. These are strategies the retail wrapper's diversification and liquidity rules simply cannot house.

Start with ticket size and liquidity needs, not with the strategy. If your intended commitment is below USD 150,000, or you need predictable weekly access to your capital, the retail scheme is usually the answer. If you can commit USD 150,000+ for years and want concentrated or private exposure, the AIF earns its place.

Fee structures differ too: AIFs more often carry performance fees alongside the management fee. Read the offer document carefully — and remember that this is educational guidance, not a recommendation.