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Top AIF Performers Over 5 Years (Feb 2025): Best Funds That Beat Market Benchmarks

Introduction

Alternative Investment Funds (AIFs) continue to be a preferred choice for investors looking for superior returns compared to traditional benchmarks. As we analyze the top-performing AIFs over the last 5 years (Feb 2025), it’s clear that some funds have significantly outperformed the BSE 500, BSE 200, and Crisil Liquid Fund Index.

In this report, we focus on the best Long-Only and Long-Short Equity Plus funds that have demonstrated sustained growth over a 5-year horizon.

Top Performers: Long-Only AIFs

Long-term AIFs invest solely in equities without taking short positions, aiming for long-term capital appreciation. The following funds have delivered the highest returns over 5 years:

Fund Name	Launch Date	1-Year Return	3-Year Return	5-Year Return
Abakkus Emerging Opportunities Fund 1	Jun 2019	11.50%	18.50%	34.30%
Ampersand Growth Opportunities Fund Scheme – I	Sep 2017	19.30%	25.10%	27.70%
I Wealth Fund	June 2018	9.90%	19.14%	25.49%
Abakkus Growth Fund 1	Jul 2018	12.40%	12.90%	24.20%
Carnelian Capital Compounder Fund1	May 2019	21.50%	22.00%	21.40%

Key Takeaways:

• Abakkus Emerging Opportunities Fund 1 was the top performer, delivering a 5-year CAGR of 34.30%, significantly outperforming the benchmarks.
• Ampersand Growth Opportunities Fund Scheme – I maintained strong long-term performance with 5-year returns of 27.70%.
• I Wealth Fund and Abakkus Growth Fund 1 also delivered solid results, proving the strength of long-term investments in emerging market opportunities.

 

Top Performer: Long-Short Equity Plus AIFs

Long-Short Equity Plus funds take hedged positions but maintain a higher exposure to equities, striking a balance between risk and reward.

Fund Name	Launch Date	1-Year Return	3-Year Return	5-Year Return
ITI Long Short Equity Fund	Apr 2018	15.89%	13.84%	14.84%

Key Takeaways:

• ITI Long Short Equity Fund has shown consistent performance over the last 5 years, delivering 14.84% CAGR, making it a stable choice for investors looking for a balanced risk-reward approach.

 

Benchmark Performance Comparison

To assess the relative performance of these AIFs, let’s compare their 5-year returns against key market indices:

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:

• Abakkus Emerging Opportunities Fund 1’s 5-year return of 34.30% was more than double the BSE 500’s 16.80% return, reinforcing its high-growth potential.
• Most Long-Only AIFs significantly outperformed traditional indices, proving their ability to deliver superior returns.
• ITI Long Short Equity Fund, while hedged, provided a better risk-adjusted return than traditional liquid funds.

 

Conclusion

For investors seeking long-term capital appreciation, Long-Only AIFs such as Abakkus Emerging Opportunities Fund 1 and Ampersand Growth Opportunities Fund have delivered outstanding 5-year returns, significantly outperforming benchmark indices.

Meanwhile, the ITI Long Short Equity Fund stands out in the Long-Short Equity Plus category, offering stable, risk-adjusted returns over 5 years.

Looking to invest in high-growth AIFs? Consider a diversified approach based on your risk tolerance and investment goals. Always consult with a financial expert before making investment decisions.