AIFs vs. Mutual Funds: Decoding the Investment Landscape Authored by: Ankur Jalan, CEO of Golden Growth Fund With the investment landscape picking an unprecedented pace in India, here are the top differences that set AIFs and Mutual Funds apart from each other. With an average growth of 70% over the last five-year tenure, alternative investment funds (AIFs) are at the cusp of rewriting the investment story of India. Compared to mutual funds (MFs) growing at an average of 14-16%, AIFs are speeding past with specific traction coming from accredited investors. While both AIFs and MFs are important investment tools, there are important distinctions that you must keep in mind before investing. AIFs have limited access as the minimum investment required often runs in lakhs of Rupees. MFs, on the other hand, are open to all with even small investors participating in the investment process without any bar of a high minimum investment. Both AIFs and MFs are regulated by the Securities and Exchange Board of India (SEBI) though the latter is under more intense scrutiny than the former. The focus areas also differ as AIFs bet more on non-conventional assets such as real estate while MFs primarily invest in bonds and stocks. As far as risks and returns are concerned, AIFs, depending on the type of assets in which the AIF invests, can vary from being safe or risky. Mutual funds invest in stocks that are volatile and carry a certain level of risk and return. Summarily, AIFs and MFs offer attractive investment opportunities, and depending upon available funds and risk appetite, you can choose the one that suits you the most. #AIFs #MutualFunds #FinancialPlanning #WealthManagement #InvestmentStrategies #AlternativeInvestments #MutualFundInvesting #AIFvsMutualFund