Benefits of AIFs
Optimum Portfolio:
Alternate Investment Funds offer more flexibility in the hands of fund managers which allows
them to create the optimum portfolio in line with investment objectives.
Smart Strategies:
Alternate Investment Funds offer smarter investment strategies that aim at generating enhanced
risk-adjusted returns by use of derivatives, and long-short hedging style of
investing.
Unlisted Exposure:
Alternate Investment Funds offer investment options like a start-up investment through venture
capital funds, and private equity investments through PE funds making them the right product for investors looking for a diversified and professionally
managed portfolio in this space.
Focus:
Alternate Investment Funds are diversified to an extent, but not beyond a point and an equity
portfolio is composed of 10 - 25 holdings. Also, most funds follow fixed
closure schedules. This makes them concentrate on the pool of funds collected
and brings focus and increased the potential for higher performance. Additionally,
because of higher minimum ticket size. Alternate Investment Funds only
attract funds from the sophisticated set of investors and are thus not prey to
the vagaries of behavioural flows.
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