Business and Finance
Business and Finance
Alternative investment funds: Dispelling myths and unlocking potential
- With
- 12 trillion in commitments, AIFs remain underutilized, held back by myths about risk and liquidity, despite their growing potential and diversification benefits.
The article from Livemint discusses the myths and potential of Alternative Investment Funds (AIFs) in India. It highlights that AIFs, which include investments like private equity, real estate, and hedge funds, are often misunderstood as being only for the ultra-rich or too risky. The piece debunks these myths by explaining that AIFs can offer diversification, potentially higher returns, and are accessible to a broader investor base than commonly thought. It points out that AIFs are regulated by SEBI, providing a structured investment environment. The article also addresses the misconception about liquidity, noting that while some AIFs might have lock-in periods, there are strategies and funds designed with different liquidity profiles. Furthermore, it emphasizes the role of AIFs in providing access to unique investment opportunities not available through traditional investment avenues, thereby unlocking potential for investors looking to diversify their portfolios beyond conventional stocks and bonds.
Read the Full Mint Article at:
[ https://www.livemint.com/money/personal-finance/alternative-investment-funds-dispelling-myths-and-unlocking-potential-11735104157738.html ]
Read the Full Mint Article at:
[ https://www.livemint.com/money/personal-finance/alternative-investment-funds-dispelling-myths-and-unlocking-potential-11735104157738.html ]
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