A growing number of high net-worth investors are slowly gravitating towards more structured products like the Alternative Investment Funds (AIF) that provide greater flexibility and investment opportu
A growing number of high net-worth investors are slowly gravitating towards more structured products like the Alternative Investment Funds (AIF) that provide greater flexibility and investment opportunities as compared to traditional investment vehicles like mutual funds.
A total of 223 AIF’s have been registered with the Securities and Exchange Board of India (Sebi) in the last four years with an investment commitment of Rs 50,441.49 crore out of which Rs 26,000 crore has already been raised as at the end of June 30, 2016.
Experts pointed out that more seasoned HNI’s are finding this product very attractive as it suits their risk profile.
Unlike traditional mutual funds, AIF’s are allowed to invest in unlisted securities, take leverage and employ diverse or complex trading strategies depending on the categories to which those funds belong.
“Around 90 per cent of investors in these funds are domestic investors who are in search of better opportunities to earn higher returns,” said Prashasta Seth, CEO, India Infoline AMC.
