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Discover Top-performing AIFs with Impressive Returns Over the Last 3 Years!

In today’s fast-paced financial world, investors are constantly looking for opportunities that go beyond traditional
methods to maximize their wealth. This is where Alternative Investment Funds (AIFs) step in, offering
unique strategies and flexibility that traditional investments often lack. With a focus on innovation and higher
returns, AIFs have quickly become a preferred choice for savvy investors who want to diversify their portfolios and
outperform the market.

In this blog, we explore the top-performing AIFs over the past three years, highlighting their standout
returns and strategies that have set new benchmarks in the investment landscape.

Broadly classified into three categories, AIFs cater to a variety of investor preferences:

1. Long-Only Funds – Focused on delivering long-term returns through pure equity holdings.

2. Long-Short Funds – A mix of long and short positions to balance risks and rewards.

3. Long-Short Equity Plus Funds – Enhanced strategies that aim for amplified gains with a balanced
   approach.

Top Performing AIFs (3-Year Track Record)

Long-Only Category

1. Abakkus Growth Fund 2 (Inception: Nov 2021) – 25% CAGR
   

   This fund, though newer, has quickly established itself as a top performer with impressive returns.

2. Abakkus Emerging Opportunities Fund (Inception: Jun 2019) – 24.6% CAGR
   

   A standout in identifying emerging opportunities and delivering consistent growth.

3. Carnelian Capital Compounder Fund 1 (Inception: May 2019) – 23.7% CAGR
   

   Known for its disciplined strategy, this fund compounds wealth effectively over the long term.

4. Abakkus Growth Fund 1 (Inception: Jul 2018) – 18.4% CAGR
   

   A pioneer among Abakkus funds, showcasing reliable performance for seasoned investors.

Long-Short Category

1. ICICI Prudential Long Short Fund – Series I (Inception: Aug 2018) – 9.6% CAGR

   This fund strikes a balance with its strategic long and short positions to generate stable returns.

2. Avendus Absolute Return Fund (Inception: Mar 2017) – 9.33% CAGR

   A well-crafted fund focusing on absolute returns while minimizing volatility.

 

Long-Short Equity Plus Category

1. ITI Long Short Equity Fund (Inception: Apr 2018) – 49% CAGR

   The star performer in this category, delivering exceptional growth with a tactical approach.

2. Nuvama Enhanced Dynamic Growth Equity [EDGE] Fund (Inception: Apr 2021) – 23.6%
   CAGR

   A fund designed to enhance equity returns dynamically while managing risks.

3. Avendus Enhanced Return Fund Series II (Inception: Nov 2018) – 15.42% CAGR

   Focused on enhanced returns, combining long-short strategies for steady growth.

 

Benchmark Comparison

To put these performances in perspective, here’s how the broader market indices have fared over the same period:

• Nifty 50: 16.8%

• BSE 500: 15.4%

• BSE 200: 14.6%

 

For investors looking to go beyond traditional market indices and mutual funds, AIFs offer a compelling
proposition with proven performance. The funds listed above not only showcase the potential of alternative investments
but also provide a pathway for generating substantial wealth in the long run.

Whether you prefer a pure equity approach, a balanced strategy, or an amplified return model, the top-performing AIFs
have something to offer for every strategic investor.

 

FAQs:

1. What is an Alternative Investment Fund (AIF)?

   An AIF is a pooled investment vehicle that invests in assets like stocks, derivatives, real estate, or private
   equity, offering alternative strategies to traditional investments.

2. How are AIFs different from Mutual Funds?

   While mutual funds are widely accessible and regulated for retail investors, AIFs cater primarily to
   high-net-worth individuals and institutional investors with more complex, innovative strategies.

3. What are the categories of AIFs?

• Long-Only: Focuses on pure equity growth.

• Long-Short: Balances gains by taking both long (buy) and short (sell) positions.

• Long-Short Equity Plus: Adds enhanced strategies for higher returns.

4. Who should invest in AIFs?

   Investors with a higher risk appetite, long-term horizons, and the financial ability to invest larger amounts
   (as AIFs have high minimum investment thresholds) can consider AIFs.

5. Why are AIFs gaining popularity?

   AIFs offer higher flexibility, innovative strategies, and the potential for better returns than traditional
   investment products.