An investor can set off a Category II AIF's passed-through losses (other than business losses) only if they have held the units for at least:
Pass-through of losses requires the units to have been held for at least 12 months.
The concept: Losses
Losses of the fund (other than business losses) pass through to investors, but an investor may set them off only if they have held the units for at least 12 months. Business losses stay in the fund and can be carried forward and set off against its future business income.