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Top AIF Performers (Feb 2025): Best Funds That Outperformed Market Benchmarks
Introduction
Alternative Investment Funds (AIFs) have gained prominence among investors seeking alpha beyond traditional market indices. As we analyze the top-performing AIFs based on their 3-year performance (as of February 2025), it’s evident that certain funds have consistently outperformed benchmarks like the BSE 500, BSE 200, and Crisil Liquid Fund Index.
In this blog, we break down the best performers across the Long-Only, Long-Short, and Long-Short Equity Plus categories.
Top Performers: Long-Only AIFs
Long-only funds follow a traditional investment approach by taking only buy positions in equities. Here are the standout performers:
| Fund Name | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return |
| Motilal Oswal Value Migration Fund OE | Sep 2020 | 48.50% | 29.6% | NA |
| First Water Capital Fund | Aug 2020 | 2.60% | 28.5% | NA |
| Ampersand Growth Opportunities Fund Scheme – I | Sep 2017 | 19.30% | 25.1% | 27.70% |
| Carnelian Capital Compounder Fund1 | May 2019 | 21.50% | 22.00% | 21.40% |
| I Wealth Fund | June 2018 | 9.90% | 19.14% | 25.49% |
Key Takeaways:
- Motilal Oswal Value Migration Fund OE led the category with an outstanding 29.6% CAGR over 3 years.
- First Water Capital Fund followed closely with 28.5% returns over 3 years.
- Ampersand Growth Opportunities Fund Scheme – I delivered strong 5-year returns of 27.70%, highlighting its long-term performance.
Top Performers: Long-Short AIFs
Long-short funds balance buy and sell positions to manage risk and optimize returns.
| Fund Name | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return |
| Alta Cura Absolute Return | Oct 2021 | 13.83% | 15.22% | NA |
Key Takeaways:
- Alta Cura Absolute Return Fund showed a 15.22% CAGR over 3 years, proving the effectiveness of a hedged approach in volatile markets.
Top Performers: Long-Short Equity Plus AIFs
Long-Short Equity Plus funds take a more aggressive approach by combining long-short strategies with a higher exposure to equities.
| Fund Name | Launch Date | 1-Year Return | 3-Year Return | 5-Year Return |
| Nuvama Enhanced Dynamic Growth Equity [EDGE] Fund | Apr 2021 | 18.50% | 21.50% | NA |
| ITI Long Short Equity Fund | Apr 2018 | 15.89% | 13.84% | 14.84% |
Key Takeaways:
- Nuvama EDGE Fund delivered an impressive 21.50% return over 3 years, outperforming its peers.
- ITI Long Short Equity Fund provided a stable 5-year return of 14.84%, reflecting consistent performance.
Benchmark Performance Comparison
To put these results into perspective, let’s compare the 3-year and 5-year returns of AIFs with major market benchmarks:
| Benchmark | 1-Year Return | 3-Year Return | 5-Year Return |
| BSE 500 | 8.5% | 12.70% | 16.80% |
| BSE 200 | 9.2% | 12.40% | 16.20% |
| Crisil Liquid Fund Index | 7.31% | 6.62% | 5.57% |
Key Takeaways:
- The top AIF performers significantly outpaced market indices, with Motilal Oswal Value Migration Fund OE and First Water Capital Fund posting 3-year returns of 29.6% and 28.5%, respectively.
- Long-Short Equity Plus funds also demonstrated higher returns than traditional benchmarks.
Conclusion
Investors looking for high-growth, actively managed AIFs should consider the Long-Only and Long-Short Equity Plus categories, which have shown consistent outperformance over market benchmarks.
While traditional indices provide stability, alternative investments like AIFs offer an opportunity to achieve superior risk-adjusted returns.
Looking to diversify your portfolio with top-performing AIFs? Conduct thorough research, assess risk tolerance, and consult with financial advisors before making investment decisions.
