How do AIFs work?
Alternative Investment Fund (AIF) under the CIU Law, is a collective investment undertaking, including its subdivisions or sub-investment funds, which provides capital from a number of investors, in order to invest it in accordance with a defined investment policy for the realization of benefits for investors and which is not licensed as a collective investment enterprise in transferable securities, according to this law.
Alternative Investment Funds offer interesting opportunities for investors to diversify their investment portfolios, to “mitigate” the impact of market volatility and to achieve long-term investment objectives even during periods of uncertain markets. This is because alternative funds have low correlations with traditional forms of investment, such as bonds and stocks.
The alternative investment fund does not require licensing as in the case of other forms of CIU, but is registered by the Financial Supervisory Authority upon request completed by the Management Company.