Alternative investment funds are a category of investment that is separate from the conventional investment categories. The conventional way of investing is putting your money in stocks, bonds, and cash. However, alternative investment funds include private equity, hedge funds, real estate, arts, and antiques.
Alternative Investment Funds (AIF) are divided into three different categories. The first category consists of investment in startups, SMEs, and other projects with socio-economic value. The second category can invest in debt securities and equity funds, and the third category aims at short-term returns by using complex trading strategies.
Individuals with a high net worth can expand their portfolio and invest in AIFs because it has high potential returns. Alternative Investment Funds include investment in precious metals and real estate products.