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Alternative Investment Funds: Understand the nuances, before they become mainstream

Alternative Investment Funds: Understand the nuances, before they become mainstream
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Synopsis

Alternative Investment Funds (AIFs), based on the objective of optimising returns of sophisticated investors, has carved a niche as a distinct asset class. A well diversified portfolio, greater flexibility and low correlation with the stock & bond markets help reduce volatility and provide an attractive alternative investment option to look at. However, due to complex investing strategies, higher fee structure, illiquidity and lack of information; there is still a long way to go for it. Sebi is trying to level the playing field with its latest ruling on AIFs by providing a direct plan option to investors.

By Shakul Gupta, ETMarkets.com
20 mins read,
To understand the basic framework of a complex yet interesting asset class like Alternative Investment Fund, it is necessary to examine its different types of funds under three categories. Also, due to the fact that this investment option is available only to the limited investors and not to the public at large, a prudent approach and due diligence is needed before deciding to invest in it. Alongside that, there is lack of information relating

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