In the dynamic world of investments, Alternative Investment Funds (AIFs) have gained significant popularity for their unique strategies. Among them, Long-Short AIFs have caught the attention due to their potential for wealth management and attractive returns.
In this blog, we’ll dive into the performance data of the two best-performing Long-Short AIFs in August 2023, based on their performance over the past year. This blog also throws light on how management of wealth is possible with proper investments in such AIF funds.
Understanding Long-Short AIF funds:
Long-Short AIF funds are a subset of Alternative Investment Funds that employ a strategy of simultaneously holding long and short positions in various assets. This strategy aims to profit from both rising and falling markets, making it an attractive option for wealth management.
The top contenders:
Let’s first have a closer look at the two Long-Short AIFs that stood out in August 2023. The data is based on the last one year of performance.
|
AMC & Scheme Name |
Overall Performance (%) |
|
| Inception Date | 1Y | |
| Alta Cura Absolute Return | Oct-21 | 18.20% |
| ICICI Prudential Long Short Fund – Series I | Aug-18 | 7.9% |
Alta Cura Absolute Return – The Outperformer:
Alta Cura Absolute Return has made quite a mark with its impressive 1-year performance of 18.20%. This AIF has been on the market since October 2021. Its track record demonstrates its ability to navigate both bullish and bearish market conditions effectively.
ICICI Prudential Long-Short Fund – Series I:
ICICI Prudential Long-Short Fund – Series I has the inception date of August 2018. This alternate investment fund has successfully delivered a respectable one-year performance of 7.90%.
While it may not match the explosive growth of Alta Cura Absolute Return, it still offers a solid return on investment.
Wealth management through Long-Short AIF funds:
Wealth management is not just about growing your wealth; it’s also about preserving it and minimizing risks. Long-Short Alternative Investment Funds (AIFs) have emerged as a compelling wealth management tool, offering unique strategies to achieve these goals.
One of the key benefits of Long-Short AIF funds is diversification. These funds can spread investments across different asset classes, reducing the overall portfolio risk. By taking short positions, they can also profit from market downturns, acting as a hedge against losses.
Managing wealth often involves minimizing tax liabilities. Long-Short AIF funds may provide tax advantages, such as the ability to offset gains against losses within the fund. Therefore, it potentially reduces your tax burden and ease in wealth management.
Factors behind the performance:
Now, let’s explore what could be driving the performance of these two Long-Short AIFs:
Investment strategy:
Alta Cura Absolute Return may be deploying a more aggressive or unique investment strategy, potentially capturing higher returns.
ICICI Prudential Long-Short Fund – Series I, being a longer-established fund, may focus on stability and risk management.
Market conditions:
The overall market conditions during the past year could have favoured the strategies employed by these AIFs differently.
Choosing the right AIF:
Investors should consider several factors when choosing between these top-performing Long-Short AIFs:
- Risk tolerance
- Investment horizon
- Diversification
End note:
In the world of Long-Short AIFs, Alta Cura Absolute Return and ICICI Prudential Long-Short Fund – Series I have made their mark as top performers in August 2023. Each offers a unique blend of risk and reward, making them suitable for wealth management and different investor profiles. It’s crucial to conduct thorough research and consult with financial advisors before making any investment decisions.
Remember, the choice of an AIF should align with your financial goals and risk tolerance. Make informed decisions to secure your financial future. In this regard, you can seek financial advice from AIF & PMS Experts India. For this, you can email us at [email protected] and call us at 8368586435.