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Long-only alternative investment funds outperform in April, shows data

Long-short funds try to profit from both rise and fall in asset prices, whereas long-only funds try to buy undervalued assets and gain if the asset price appreciates

investment, investors, stocks, market, shares, shareholders, MF, savings
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For a one-year period, none of the long-only funds has given positive returns, whereas all but one of the seven long-short funds have posted gains

Ashley Coutinho
Long-only strategies – which fall under Category-III alternative investment funds (AIFs) — outperformed long-short strategies in April, giving average category returns of 11.8 per cent, as against 0.6 per cent given by the latter, the data from PMS Bazaar shows.

This was in a period when the benchmark index Nifty50 rallied 14.7 per cent. Experts said, the market uptrend in April benefited long-only strategies, but given the choppy nature of the market, long-short funds could be a better space to be in. Long-short funds try to profit from both rise and fall in asset prices, whereas long-only funds try to buy

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