Personal Finance: PE funds are ballooning, but so are the risks

Equity mutual funds can underperform, PE funds can fail totally. Various stages of funding a business entail varying risk-return profiles

(Representative image)

Highlights

Alternate investment funds have mopped up Rs3.2 lakh crore until June 2022
PE funds entail high but varied risks, based on a host of factors
Key to returns lies in PE fund managers’ timely exits from companies they invest in

Ask any high net worth investor (HNI), about their experience with private equity (PE) investing, it’s sure to be a mixed bag. And yet this is a fast growing arm of the investment management industry in India.

Nearly ten years ago, the aggregate…

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