Hedge funds commitments dip 2.7% in first-ever drop in the category

Pandemic year has seen a slowdown for other kinds of alternative investment funds too

Wealthy investors’ commitments to invest in sophisticated funds which look to provide market-beating returns have declined for the first time on record.

The total commitments to category III alternative investment funds, which include hedge funds, dropped by Rs 1,326 crore in 2020. Total commitments fell from Rs 48,151.4 crore at the end of 2019, to Rs 46,824.9 crore at the end of December 2020, shows regulatory data which is released with a lag. This is the first time that commitments have seen a decline since records are available from 2012.

The Securities and Exchange Board of India had come out