What are AIF funds?

Category I AIF are those funds that invest in start-ups or social venture funds, infrastructure funds, SME funds, and so on. The government or regulators consider this category of funds as socially viable or economically desirable.

What is alternative fund?

Alternative funds invest in a variety of strategies and/or asset classes, looking to provide risk and return profiles that are distinct from traditional asset classes (such as equities, fixed income and/or cash).

What is Alternative Investment in finance?

Alternative investments are financial assets which do not belong to the conventional income/cash/equity categories. Hedge funds, commodities, real property, tangible assets, venture capital or private equity are a few examples of alternative investments.

Are alternative investments safe?

Risks of Alternative Investments Alternative investments are more complex than traditional investment vehicles. They often have higher fees associated with them. As with any investment, the potential for a higher return means higher risk.

What are 4 types of investments?

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

• Growth investments.
• Shares.
• Property.
• Defensive investments.
• Cash.
• Fixed interest.

Who invests AIF?

Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors. 2.

Is Bitcoin an alternative investment?

Although cryptocurrencies could be seen as a high-risk investment because it is an alternative investment, like other alternative investments, they also offer a higher return. They make a great option for a long-term investment due to the fact that they are likely to remain strong and pull through any financial crisis.

Is securitized debt an alternative investment?

As one of the largest fixed-income security types, securitized products present fixed-income investors with an alternative to government, corporate, or municipal bonds. There are several methods that financial intermediaries use in order to issue bonds that are safer than the assets that back them.

Is private debt an alternative investment?

The uptake of private debt is a relatively new trend in alternative investments. The recent rise in private debt AUM was born out of the Global Financial Crisis as banks, the more traditional lenders, shied from riskier loans and private, or direct, lenders filled the void.

What are structured products in finance?

What Are Structured Products? Structured products are pre-packaged investments that normally include assets linked to interest plus one or more derivatives. They are generally tied to an index or basket of securities, and are designed to facilitate highly customized risk-return objectives.

What is meant by hedge funds?

Definition: Hedge fund is a private investment partnership and funds pool that uses varied and complex proprietary strategies and invests or trades in complex products, including listed and unlisted derivatives. There are many strategies a hedge fund may use to generate returns.

How much should you invest in alternatives?

A new study carried out by Dexia Asset Management shows the benefits of allocating 15% to 20% of a portfolio to alternative funds. Finding a good balance between risk and return is the first aim of any investment strategy.

Are alternative investments a good idea?

Why Alternative Investments Can Be A Good Choice Potential for more tax-advantages or sheltered cash flows. Protection of volatility in stock mark or elsewhere. Access to different assets with higher return potentials.