Pakistan Alternative

Pakistan Alternative Funds or ETFs invest the majority of their assets in... Pakistan Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Pakistan. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). A Pakistan Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. The Pakistani alts industry is very much still in its infancy. The government only first approved a license for an alternative fund in 2016. Meanwhile, venture capital funds in 2023 only raised a combined US$60 million. Pakistan has recently suffered a severe economic crisis but the country’s large population provides some optimism for the future of the alternative market. Pakistan Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. Last Updated: 11/26/2024 View more View less

Pakistan Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Pakistan. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds,... Pakistan Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in Pakistan. Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). A Pakistan Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. The Pakistani alts industry is very much still in its infancy. The government only first approved a license for an alternative fund in 2016. Meanwhile, venture capital funds in 2023 only raised a combined US$60 million. Pakistan has recently suffered a severe economic crisis but the country’s large population provides some optimism for the future of the alternative market. Pakistan Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. Last Updated: 11/26/2024 View more View less