While AIFs are known for high returns, the first rule of sophisticated investing is **capital preservation**. The high minimum ticket size (_1 Crore) for AIFs is a regulatory mechanism to ensure only investors who can absorb the high risk participate.
A good fund manager prioritizes downside protection through strong due diligence, conservative valuations, and risk mitigation strategies. This focus ensures that the pursuit of exponential returns never compromises the investor’s core capital.
