Data tracked by PMSBazaar.com showed that 16 AIF funds across categories have given positive returns in February 2025 compared to near 6% fall seen in the Nifty50 in the same period.
Note: Each scheme may have a different benchmark. Nifty is used as a reference.
16 out of 120 funds delivered positive return in the month of February which includes Vivriti Asset Managers Emerging Corporate Bond Fund (up 13.75%), Northern Arc Investment Managers IFMR Fimpact Long Term credit Fund (up 12.5%), followed by Vivriti Asset Managers Alpha Debt Fund Enhanced (up 12.1%) and Alpha Debt Fund (up 9%) from the Category II space.
AIFs are regulated by the Securities and Exchange Board of India (SEBI) and can be formed as a trust, company, or limited liability partnership (LLP). The minimum investment for an investor in an AIF is Rs 1 crore.
Most funds which outperformed or delivered positive returns are from the Category II space as equities took back seat in the month gone by.
Category II funds in the Alternative Investment Fund (AIF) space typically invest in a mix of equity, debt, or other securities without leverage. These funds include private equity funds, debt funds, funds of funds, and other similar funds.
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Category III Performance:
Category III AIFs are often focused on short-term trading, arbitrage opportunities, and other sophisticated investment strategies in listed or unlisted derivatives aimed at generating high returns.
A Category III Alternative Investment Fund (AIF) debt fund invests in listed or unlisted securities, debt instruments, and other financial instruments.
Whitespace Alpha Debt Plus Fund rose more than 1.4% in February, and Northern Arc Money Market Alpha Fund from the Category III Debt fund space was up 0.73%, data from PMSBazaar.com showed for February 2025.
In the long-only fund space under the Category III AIFs Generational Capital Breakout Fund fell more than 16%, followed by Carnelian Asset Managers Structural Shift Fund which was also down by over 16%, and Samvitti Capital Alpha Fund fell over 15%.
80 funds from the Category III-Long Only category delivered negative returns in February 2025. Long-only funds are investment funds that follow a strategy of exclusively taking “long positions” in securities.
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