AIFs Gain Traction as Investments Rise 32% to ₹5.38L Cr by March 2025

The appeal of these alternatives is driven by their potential to offer higher returns as well as stability during periods of market stress

- OUR CORRESPONDENT

NEW DELHI: India's affluent investors are increasingly turning to Alternative Investment Funds (AIFs), with investments in the space reaching Rs 5.38 lakh crore by the end of the March 2025 quarter, a surge of 32 per cent from the year earlier.

This increase is being driven by heightened market volatility and shifting global macroeconomic conditions, prompting the wealthy to seek more diversified and resilient portfolio options, according to investment advisory firm Multi-Act Trade and Investments.

This trend marks a departure from the traditional equity-debt mix, as the country's affluent investors or High Networth Individuals (HNIs) move into the AIFs space, which include private equity, hedge funds, real assets, private credit, and other non-traditional instruments that typically have low correlation with public markets.