AIFs are the new in thing with High Net worth Individuals
Posted on: 06/Sep/2016 9:09:31 AM
Data has shown that a growing number of high net worth investors are slowly gravitating toward more structured products like the AIF, or Alternative Investment Funds. These provide flexibility and investment opportunities as compared to the traditional investments such as mutual funds. Over the last four years, a total of 223 AIFs have been registered with the Securities and Exchange Board of India, or SEBI. The investment commitment is more than Rs. 50000 crore.
According to experts, more seasoned HNIs are finding this product very attractive as it suits their risk profile. Unlike traditional mutual funds, AIFs are allowed to invest in unlisted securities, take leverage and employ diverse or complex trading strategies depending on the categories to which those funds belong. Around 90 per cent of investors in these funds are domestic investors who are in search of better opportunities to earn higher returns.
