Benefits of accessing to funds meant only for accredited investors?

Hi anon,

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While I do offer AI funds for my clients, I've since come to realise that there is really a reason why they are AI funds.

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Fund volatility is first and foremost, typically higher than your traditional mass market fund. Only people with deep pockets can withstand such volatility.

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Secondly, the capital required is not small. We're looking at an average Singaporean's annual income just to buy in, and some have 6 figure requirements. Again, not for the average retail investor.

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Lastly, some of these funds can be closed end funds (i.e have a limit to the maximum they can take in) and may have lock ins. AIs will usually have the holding power to leave funds untouched for years. This allows fund houses and fund managers to execute their planned strategies rather than have to cope with retail investors subscribing and redeeming every day.

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Having said all that, some boutique funds really do deliver market beating returns. But the hurdles to get into the funds are probably too much for the typical retail investor.

By "funds", i suppose you mean mutual funds or unit trusts, and not other types of investment vehicles.

AI funds have lower fees, and have more choices/opportunites in the underlying, but not necessarily at higher risks.