Morgan Stanley Alternative Investment Partners has launched the AIP Dynamic Alternative Strategies Fund, an open-ended mutual fund which the firm said addresses challenges associated with investing in alternatives.

The fund provides daily liquidity and offers a range of alternative strategies that may complement traditional equity and fixed income investments, Morgan Stanley said.

The fund uses AIP’s proprietary hedge fund replication strategy that seeks to generate returns based on underlying hedge fund strategies. It is also actively managed to capture new opportunities and manage risk, the firm said.

Morgan Stanley Alternative Investment Partners is part of Morgan Stanley Investment Management.