What is an alternative investment fund (AIF)?

An alternative investment fund (AIF) is a collective term for investment funds that invest in alternative investments, i.e. in investment instruments that are not traditional listed securities (shares, bonds).
Alternative investment funds invest their money in specific real assets, such as real estate, private equity, commodities or art, within a clearly defined framework.
The managers of AIFs (AIFMs) are subject to very strict regulation to ensure investor protection. AIFs are frequently aimed at professional investors only.