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What is an Alternative Investment Fund? All about its benefits


Published on 2025-02-17 06:21:09 - cnbctv18
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  • AIFs provide access to such exclusive markets, allowing investors to be part of big business deals before they become public. For example, many AIFs invested in Flipkart before it was sold to Walmart,

An Alternative Investment Fund (AIF) is a type of investment vehicle that pools funds from investors to invest in assets other than traditional stocks, bonds, and cash. According to the article on CNBC TV18, AIFs are designed for high net worth individuals and institutional investors, offering access to a diverse range of investments like real estate, private equity, hedge funds, commodities, and more, which are typically less liquid and have a different risk-return profile compared to conventional investments. The benefits of AIFs include portfolio diversification, potential for higher returns, and the ability to invest in niche markets or strategies not available through standard investment avenues. They also provide flexibility in investment strategies, allowing for tailored approaches to meet specific investor goals. However, AIFs often come with higher fees, less transparency, and require investors to commit their capital for longer periods, which can be a drawback for those needing liquidity.

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[ https://www.cnbctv18.com/alternative-investment-fund/what-is-an-alternative-investment-fund-all-about-its-benefits-19560059.htm ]