AIF returns trailed market in Dec, close-ended schemes see median return

Both long-short funds and long-only funds gave lower returns than Nifty, Sensex

Alternative Investment Funds (AIFs) with a lock-in period performed better than the ones that allow investors to withdraw capital at any time. Close-ended schemes had a median return of 5.62 per cent in December, according to data from industry tracker PMSBazaar. The median returns for open-ended schemes were 3.91 per cent (chart 1). The S&P BSE Sensex and the Nifty 50 index both hit new highs in December.

The analysis above looked at December annualised monthly returns for Category III AIFs. It considered schemes across strategies including long-only funds which invest in the markets going up, and long-short funds which