{"id":5210,"date":"2022-01-01T12:44:09","date_gmt":"2022-01-01T07:14:09","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=5210"},"modified":"2022-01-01T12:55:51","modified_gmt":"2022-01-01T07:25:51","slug":"be-careful-with-alternative-investment-funds-outside-india","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/be-careful-with-alternative-investment-funds-outside-india\/","title":{"rendered":"Be Careful With Alternative Investment Funds Outside India","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
A lot of alternative investment funds that operate and are located outside India require a very low entry capital – $1,000 or less.<\/p>\n
Setting an entry-level price so low is a strategy for luring retail investors who often don’t do their research and assessment.<\/p>\n
Typically, a Hedge Fund is only allowed to take money from institutional investors or High-Net-Worth individuals. We are talking about $1,000,000 or more.<\/p>\n
However, certain rules and regulations don’t apply to AIFs, which allow them to take money from anyone.<\/p>\n
There are some pros and cons of these AIFs.<\/p>\n
Pros are – you might get an equity-beating return in the long run.<\/p>\n
Cons are – your chances of losing money are much higher. You have no control over the assets. You pay a lot of fees (20% is a lot).<\/p>\n
Should you invest in these AIFs?<\/strong><\/p>\n Understand three critical points about typical alternative investment funds. Primarily while investing in one located and operating outside India.<\/p>\n This is the scene for Alternative Investment Funds available for Indians.<\/p>\n However, this changes dramatically in the U.S.<\/p>\n\n