Home / Markets / Mutual Fund / Category-III AIFs increasingly forego lock-ins, turn to open-ended schemes

Category-III AIFs increasingly forego lock-ins, turn to open-ended schemes

Majority of funds now open for subscription have no lock-in

investment, investors, savings, mf, funding, tech, economy, gdp, aif, alternative investment fund, capital, startups, tech, savings, money, cash, shares, funds, equity

Premium

Category-III AIFs include hedge funds which invest in public markets.

Sachin P Mampatta Mumbai

3 min read Last Updated : Apr 23 2021 | 11:43 PM IST

Sophisticated investment funds for the rich are increasingly foregoing mandatory lock-ins amid a drop in inflows.

These category-III alternative investment funds (AIFs) increasingly allow investors to withdraw their money at will even as clients express preference for higher liquidity amid the uncertainties caused by Covid-19. Each fund has a minimum investment of at least one crore rupees. Around 20 out of the 28 category III AIFs which have subscriptions open for investors currently, for which data is available, fall in the open-ended category, shows an analysis of data from industry tracker PMS Bazaar.

The trend is only gaining momentum, according

Topics : AIF Hedge funds ultra high networth individuals

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in