Dan Purjes Discusses the Alternative Investment Fund (AIF)

Dan Purjes Has long been interested in the so-called alternative investment fund or AIF.  This is a financial construction in which people make an investment by pulling money together in a single fund period members, which includes people such as Mctague and Barrons,  help to create an investment policy, which will guide the final list of assets purchased. These types of funds are often found on Wall Street, and they are also frequently discussed in a report in the New York Times, who have even once featured it as their main story in relation to an investment group in Rockwood.

Dan Purjes on the AIF

If you are interested in investing in an AIF, it is important that you understand the regulations surrounding them.  These regulations are in place to make sure that there is a systemic stability, effectively protecting the consumer and forming new capital. It also makes markets more efficient. Current regulations however, do not cover employee welfare trusts, family trusts, collective investment schemes, mutual funds, special purpose vehicles, holding companies, funds managed by reconstruction companies or securitization, and any other of such type of fun pool.

There are different categories of AIFs. Category 1 covers start-up investments and investments in small to medium Enterprises period it also covers venture capital funds and organisation that have a positive effects on the economy as a whole, often through incentives. Under category 2, investments that do not come with government incentives or concessions are covered. This includes debt funds and private equity funds for instance. Finally, there is category 3, which includes hedge funds that want to make a short term return, funds in which complex trading strategies are employed, and funds that employ leverage, such as derivatives.

Regulations are in place for the AIF in order to protect finances and help sustained growth.  Some people feel that these regulations or so stringent and typed that they make it difficult to make an asset class grow on the short-term. While this may be true, the reality is also that it strongly encourages long-term growth, which has a highly positive economic impact overall. Clearly, these types of funds are suitable for those who are more interested in investments that mature over time.

As with all types of Investments, it is important to understand that there are no security and that significant risks are always associated with it. Only those who have the ability to lose the money they have invested should really ever consider it. THat said, this is true not just for the AIF, but also for any other type of investment.  In essence, all forms of Investments, be they hedge funds, stocks, foreign exchange, precious metals, or any other type of investment, are a form of gambling. If there were any guarantees that a financial return would be made, everybody would be doing it. It is also for this reason that it is actually so important that regulations are in place, even if those sometimes it’s likely restricts the way people can earn.