Long-only alternative investment funds beat Nifty in 2021, shows data

Thirty out of the 31 long-only Category-III alternative investment funds (AIFs) beat the Nifty50 index in 2021. These funds gave average returns of 46.3 per cent against the 24.1 per cent clocked by the Nifty.
 
It was a different story for long-short funds with only two out of the 11 strategies outperforming the benchmark with average returns of 16.9 per cent. Such funds employ a dual strategy to make returns — buy stocks that are expected to appreciate and short or sell stocks that are expected to fall.
 
Roha Asset Managers’ Emerging Companies Fund topped the one-year charts with returns of 108.8 per cent. Aequitas Equity Scheme I (88.9 per cent), and Abakkus Asset Manager’s Emerging Opportunities Fund I (85 per cent) were the other top performers. Roha Emerging Companies Fund was also the top performer in December with returns of 10.8 per cent.
 
Category-III AIFs include hedge funds that employ complex trading strategies or use leverage to increase returns. The minimum investment in such funds is Rs 1 crore.