Alternative investment funds – what, and for whom?

Alternative investment funds

Often, due to their long investment horizon and high level of risk, alternative investment funds are only suitable for professional investors and, depending on the product, for certain non-professional investors who are considered to have a sufficient understanding of the fund and its investment activities. The appropriate target group of investors for a fund is determined on a product-by-product basis.

  • Alternative investment fund (AIF) refers to an entity or other collective investment in which assets are raised from several investors and invested in accordance with a defined investment policy. An alternative investment fund can invest almost anywhere. Examples of alternative investment funds include real estate, private equity and hedge funds and special investment funds.
  • Alternative investment funds are different than so-called traditional UCITS funds for which the risk diversification and investments are strictly regulated.
  • Alternative investment funds are often closed-ended funds that may have weak and/or low liquidity.
  • Before investing, it is important to carefully familiarize yourself with the fund’s product documentation, as well as its features and risks.