Basic Information About NIIF

 This is one of the best and first specific investment funds set up in 2015 by the government of India. It is known as National Investment and Infrastructure fund. # ADIA 

As everyone knows that creation of any specific investment fund has some basic and important objective, Government also has some objective behind this fund creation,  # Abu Dhabi Investment Authority  # Asian Infrastructure Bank  # ADB # Asian Development Bank # Australian Super # CPP Investments # New Development Bank # Ontario Teachers Pension Plan  # PSP Investments # Temasek  # US International DFC

·  The government wants to minimize economic impact commercially.

·  To manage some unwanted economic flow in some basic investments.

Startup Idea of National Investment and Infrastructure Fund

When the union budget was passed in 2015-16 by minister Arun Jaitley, the government noticed some important changes in the finance sector. # AIIB

 

Then Finance Minister thought to establish an alternative investment fund to provide a positive flow of the economy.

 

After some meetings and some common decisions of the department of economic affairs, this investment fund was declared as the national investment fund in February 2015.

It was declared as,

·  Infrastructure Investment Wealth fund

·  Industry type: institutional Investment and Fund Management

·  Headquarters in Mumbai and the area served is India.

Funds Managed by NIIF

NIIF manage many funds but officially they are working with three types of funds,

·  Master Funds

·  Fund of funds

·  Strategic Investment Funds

Mater fund is one of the smartest ways of investment. In this fund, the master-feeder structure is used, in which investors can manage any type of investment and credit-debit in a simple and easy way.

·  Some primary investments are made in this fund like to manage power, road, Port etc.

 

In short words, we can say it FOF, and it is a multi-manager investment, it basically works in mutual funds.

·  Investors who have a good track record in infrastructure, usually invest in this fund.

 

In common words, we can say that it is the private sector of investment, some real estate. This investment keeps an impact on economic development.

·  The objective behind the setup of a strategic investment fund is to manage the green field and brown field of core infrastructure.

Investors in National Investment and Infrastructure Fund

After the approval of NIIF officially they need some investors, to control the flow of investments and to manage some economic aspects.

At that time the two investors came with NIIF,

1. ADIA (Abu Dhabi Investment Authority)

·  The time was October 2017, when NIIF got their first investor, they make a $1 billion investment in NIIF.

·  With this agreement, ADIA becomes the first institutional investor in NIIF.

·  This was the master fund in which the Indian government become 49% shareholder

1. AIIB (Asian Infrastructure Investment Bank)

·  It was June 2018 when AIIB announced the investment of $ 200 million, and become the second-largest investor in NIIF.

·  The first time the team of AIIB team agreed on the investment of $ 100 million but now it is $ 200 million.

·  It was the fund of funds.

 

If the decision is going on than we have to know some point about ESG, which is also a part of investment and we can say that a term of the investment.

·  ESG stand for Economic, Social and Governance.

·  It is known as the sustainable investing term which assists the investors in the social and economic sector.

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