Data tracked by PMSBazaar.com showed that 38 AIF funds across categories have risen more than 2.3% in September 2024 compared to 2.2% rally seen in the Nifty50 in the same period.
Note: Each scheme may have a different benchmark. Nifty is used as a reference.
AIFs are regulated by the Securities and Exchange Board of India (SEBI) and can be formed as a trust, company, or limited liability partnership (LLP). The minimum investment for an investor in an AIF is Rs 1 crore.
Top 4 funds which rose by about 10% in September are from Category II AIF which include schemes like Vivritiβs Emerging Corporate Bond Fund (up14%), Northern Arcβs IFMR Fimpact Long Term Credit Fund (up 12.2%), Vivriti AMCβs Alpha Debt Fund Enhanced (up 10.5%) and Alpha Debt Fund (up 9.8%) in September, data from PMSBazaar showed.
Category II funds in the Alternative Investment Fund (AIF) space typically invest in a mix of equity, debt, or other securities without leverage. These funds include private equity funds, debt funds, funds of funds, and other similar funds.
Category III fund performance:
Category III AIFs are often focused on short-term trading, arbitrage opportunities, and other sophisticated investment strategies in listed or unlisted derivatives aimed at generating high returns.
Under the Category III category long-only funds generated strong returns for investors in September which include Sundaram Alternate Assetβs Opportunity Series (up 6%), Monarch Networthβs MNCL Capital Compounder was up 5.7%, Motilal Oswal Growth Anchor Fund rose 4.9%, and 360 ONE Asset Managementβs Multi Strategy Fund was up 4.7% in September.
Long-only AIFs under Category III are a type of investment structure in India that primarily focus on equity investments with a long-term horizon.
Under the long-short schemes Altacura AIβs Maximum Fund was up 4.6%, Avendus Capital Enhanced Return Fund gave returns of 4.3%, and Edelweiss Asset Management Consumer Trends Fund was up 4.3% in September.
Some of the long-only and long-short schemes under the Category III funds delivered negative returns in September.
Schemes which closed in the red include names like CCV Investment Managers Emerging Opportunities Fund which was down 4%, Motilal Oswal Hedged Equity Multi Factor Strategy was down 3.4%, Swyom Advisors India Alpha Fund was down 2.6% and Nippon Lifeβs Undiscovered India Fund fell more than 2% in a month.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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