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Alternative mutual funds have been gaining popularity among mutual fund investors. These funds differ from traditional mutual funds as they use hedge fund-like characteristics. In 2014, there have been nearly 50 new alternative mutual funds launched. Below are the top 10 launches so far.

Despite the rising popularity of passively-managed products, alternative vehicles are still gaining traction as investors seek out creative ways to generate both meaningful and uncorrelated sources of returns amid all-time highs for major equity benchmarks on Wall Street. Uncertainty surrounding the Fed's next move regarding interest rates is also prompting many to seek out alternative vehicles that aren't necessarily linked to well-known benchmarks.

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Top Alternative Mutual Fund Launches

Ticker	Mutual Fund	Net Assets
GSOFX	GMO Special Opportunities Fund Class VI	$504.4M
BXMIX	Blackstone Alternative Multi-Strategy Fund	$410M
ALATX	AllianceBernstein Multi-Manager Alternative Strategies Fund	$403.9M
DRNAX	Dreyfus Alternative Diversifier Strategies Fund	$351.6M
DBNAX	Dreyfus Select Managers Long/Short Fund	$273.2M
DSLAX	Deutsche Strategic Equity Long/Short Fund	$208.7M
GURAX	Guggenheim Risk Managed Real Estate Fund	$104.3M
WALTX	Wells Fargo Advantage Alternative Strategies Fund	$103.1M
BMMAX	BlackRock Multi-Manager Alternative Strategies Fund	$100.6.M
VATAX	Virtus Alternative Total Solution Fund	$70.1M

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The Bottom Line

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Nine of the alternative mutual funds launched so far in 2014 have already exceeded $100 million in assets, showing the growing popularity of the funds.

The high level of marketing for these funds has also increased this year, contributing to the growth of these funds.