Why in the News?

Recently, the National Investment and Infrastructure Fund collaborated with the Japan Bank for International Cooperation (JBIC) to launch the India-Japan Fund, which amounts to $600 million.

About the National Investment and Infrastructure Fund (NIIF):

• NIIF is a fund manager owned by investors and anchored by the Government of India (GoI).
• It collaborates with both global and domestic institutional investors.
• Established in 2015, NIIF is India's first sovereign wealth fund (SWF).
• NIIF plays a vital role in financing infrastructure projects, including greenfield (new), brownfield (existing), and stalled projects.
• The primary objective of NIIF is to maximize its economic impact by investing in various infrastructure-related projects.

There are three types of NIIF funds:

• Master Fund: This fund primarily invests in infrastructure projects such as roads, ports, airports, and power generation.
• It also invests in well-established enterprises operating under long-term agreements in regulated environments with a strong track record.
• Fund of Funds: This category focuses on investing in funds managed by renowned fund managers with a proven track record.
• It acts as an anchor investor, which encourages fund managers to attract more investments from institutional investors.
• Strategic Fund: Registered as an Alternative Fund II under the Securities and Exchange Board of India (SEBI), the Strategic Fund primarily invests in equity and equity-linked instruments.
• All these funds are registered as Alternative Investment Funds (AIF) with SEBI.