What are Alternative Investment Funds? Top Strategies Promising Double-Digit Returns in 2024
Explore the role and diversification benefits of including alternative investment funds in your portfolio. Explore the top strategies of 2024 that are offering double-digit returns.
Introduction: The Investment Dilemma
“When it comes to Fixed income investments, you must be either aware of the Bank Fixed deposits or Debt funds.
However, the last two years have been very tough for both, as FD rates and debt fund returns were not able to even beat the inflation.
Even today, the post-tax return that you get on FD is hovering around 3-4%, which again fails to beat the inflation.
Thus, it’s time that you look beyond FDs and focus on Alternative strategies that give consistent and predictable inflation-beating high returns for wealth creation.
Understanding Alternative Investment Funds (AIFs)
What Are AIFs?
In simple terms, Alternative Investment Funds are pooled investments that differ from traditional equity and fixed income investments. They can include private equity, hedge funds, managed futures, art and antiques, commodities, and even real estate.
The Growth of AIFs in India
In India, AIFs are becoming a buzzword among savvy investors. These strategies are gaining traction amongst Indian families for their ability to provide higher, inflation-beating returns.
The Allure of Alternative Investment Strategies
1. The Allure of Alternative Investment Strategies
A well-diversified portfolio is like a well-balanced diet. Just as you need a variety of nutrients, your investment portfolio needs a mix of assets to stay healthy. AIFs can provide this balance, reducing risk and enhancing returns.
2. Regular & Consistent Income:
Imagine receiving a steady stream of income without the daily grind. AIFs often offer quarterly payouts, making them an attractive option for those seeking regular income.
3. High Expected Portfolio IRR:
Alternative Strategies stand out for their potential to deliver double-digit returns. With target portfolio Internal Rates of Return (IRR) hovering around 14-17%, AIFs present an opportunity for significant wealth growth.
Top Alternative Investment Strategies for 2024
As we step into 2024, certain alternative investment strategies are poised to outperform. In this video, our Executive Director: Mr Krishna Makhariya, CFA covers- The massive growth of AIFs in India and 2 Alternative strategies that are giving predictable returns of 12-13%.
Key Highlights:Not Just an Alternative: Making the Switch
Transitioning from traditional to alternative investments can be a game-changer. It’s about stepping out of the comfort zone and embracing new opportunities.
They are not just an alternative; they are becoming the preferred choice.