Fund-of-fund AIFs gain traction, at least three players launch such schemes

Diversification at a lower cost said to be among the key reasons for such structures

Alternative investment funds (AIFs) investing in the units of other AIFs are an emerging trend among schemes for the wealthy.

At least three major financial service providers have either launched or are in the process of launching such schemes. An AIF is a scheme for the rich with a minimum investment of one crore rupees. Those launching AIFs to invest in other AIFs include the IIFL group, Waterfield Advisors and the ASK group, according to company and industry sources.

Easier diversification, lower administrative burdens and a preference for institutional investors among fund managers are among the key drivers for the