Alternative Investment Funds (AIFs) are a popular investment option for investors looking for a diversified portfolio. AIFs pool money from multiple investors and invest in various asset classes such as private equity, real estate, hedge funds, and venture capital. You can also analyse AIF performance before investing them.
The top three benefits of AIF investing:
Here are three benefits of investing in AIF portfolios.
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Diversification:
One of the significant benefits of investing in AIF portfolios is diversification. Diversification helps to reduce the overall risk of the portfolio as the investment is spread across various asset classes.
AIFs invest in a range of alternative assets that are not typically available in traditional investment options like stocks and bonds. This helps to provide a hedge against market volatility and can help mitigate the risk of loss.
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Professional management:
Another advantage of investing in AIF portfolios is professional management. AIFs are managed by professional fund managers who have extensive knowledge and experience in managing various asset classes.
These managers follow a well-defined investment strategy and aim to generate higher returns for investors. The fund managers conduct extensive research and analysis to identify the best investment opportunities and manage the portfolio’s risk by diversifying across multiple asset classes.
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Higher Returns
Investing in AIF portfolios can provide higher returns compared to traditional investment options like stocks and bonds. Alternative asset classes such as private equity, real estate, and venture capital can generate higher returns over the long term.
Additionally, AIFs offer different types of investment structures such as closed-end funds, open-end funds, and hybrid funds. Closed-end funds have a fixed number of shares, and investors cannot redeem their shares until the end of the fund’s term.
Open-end funds permit enthusiast investors to enter and exit the fund at any time. Hybrid funds combine the features of both closed-end and open-end funds.
However, it is important to note that AIFs are not without risk, and investors should carefully consider the risks and rewards before investing. You can also compare AIF before taking any critical decision.
Now, there might be an interest growing in you, which is the most suitable fund for your investment. Every AMC-led AIF portfolio has its own unique investment strategy and capability.
Here, we are going to discuss the top AIF performers for your better understanding.
Top AIF performers:
Below you can see the table on one-year, three-year and five-year basis AIF performance table.
1 Year:
Top 5 Long Only AIFs (One year basis)
Aequitas Equity Scheme I with its remarkable 20.50% strategic performance get the top position in this table. Abakkus’s Growth Fund is in 2nd highest performing AIF in this category.
| AMC and Fund Names | Strategy Performance |
| Aequitas Equity Scheme I | 20.05% |
| Abakkus Growth Fund 2 | 10.2% |
| Aditya Birla-India Equity Opportunities Fund | 7.55% |
| Emkay Emerging Stars Fund Series IV | 7.40% |
| Monarch AIF—MNCL Capital Compounder Fund | 5.20% |
Top 5 Long short AIFs (One year basis)
In our long short AIF performance category, Alta Cura Absolute Return secured the highest rank, followed by Nuvama and ICICI Prudential.
| AMC and Fund Names | Strategy Performance |
| Alta Cura Absolute Return | 16.26% |
| Nuvama Enhanced Dynamic Growth Equity [EDGE] Fund | 11.40% |
| ICICI Prudential Long Short Fund—Series I | 9.42% |
| Avendus Absolute Return Fund | 6.71% |
| ITI Long Short Equity Fund | 2.92% |
3 Years:
Top 5 Long Only AIFs (3 years basis)
In three-year basis performance, Roha Emerging Companies Fund with its astonishing 43.08% performance got the highest position. Two funds of Abakkus are also there.
| AMC and Fund Names | Strategy Performance |
| Roha Emerging Companies Fund | 43.08% |
| Aequitas Equity Scheme I | 40.16% |
| Abakkus Emerging Opportunities Fund | 36.5% |
| Abakkus Growth Fund 1 | 24.3% |
| Alchemy Leaders of Tomorrow | 17.7% |
Top 5 Long short AIFs (3 years basis)
Here, you can see that ITI Long Short Equity Fund give the best return performance. It has 42.04% strategy performance. You may compare this AIF with other funds to get a clear thought.
| AMC and Fund Names | Strategy Performance |
| ITI Long Short Equity Fund | 42.04% |
| ICICI Prudential Long Short Fund—Series I | 13.15% |
| Avendus Absolute Return Fund | 10.29% |
5 Years:
Best Long Only AIF (5 years basis)
Here, we find Edelweiss Alternative Equity Scheme is the best performing long only AIF. It has 5.22% strategy performance.
| AMC and Fund Names | Strategy Performance |
| Edelweiss Alternative Equity Scheme | 5.22% |
Top 5 Long short AIFs (5 years basis)
Avendus Absolute Return Fund with its 11.13% strategy performance reach to this position.
| AMC and Fund Names | Strategy Performance |
| Avendus Absolute Return Fund | 11.13% |
Final thought:
In conclusion, investing in AIF portfolios can provide investors with diversification, professional management, and potentially higher returns. However, it is important to note that investing in AIFs carries risks, and investors should carefully read the fund prospectus. They should also consider their investment objectives, risk tolerance, AIF performance and time horizon before investing.
It is advisable to consult with a financial advisor before making any major capital investment. You can reach AIF & PMS Experts India Pvt. Ltd. in this regard. You may like to call experts at 8368586435 and mail them at [email protected] for better investing knowledge.