Alternative Investment Funds

Domestic investors pumped Rs 1.14 lakh crore into AIFs in 18 months to September 2025, reflecting that the industry is building a locally-anchored capital base, a report by Crisil said. Domestic investors accounted for 55.3 per cent of category I and II AIF capital in September 2025, up from 50.3 per cent in March 2024, with an incremental inflow of Rs 1.14 lakh crore over the period intervening, the report added. "That indicates the industry is building a more self-sustaining, locally anchored capital base, reducing its reliance on foreign capital," according to the third edition of 'No Ifs About AIFs', a benchmark-led assessment of India's AIF ecosystem by Oister Global and Crisil Limited. Cumulative alternative investment fund (AIF) commitments across Categories I, II and III reached Rs 15.05 lakh crore as of September 2025, clocking a compound annual growth rate of 30.7 per cent between fiscal 2021 and the first half of fiscal 2026, it highlighted. On the outcome, the report sa

Fund houses rolling out SIF are facing distribution challenges as stringent certification norms sharply limit eligible distributors, prompting the industry to seek regulatory relaxations

Likely amendments may ease compliance, enable greater foreign inflows

Sebi proposes easing exit norms for AIFs, allowing limited retention of liquidation proceeds and introducing a lighter compliance regime for inoperative funds

Data from Sebi showed that investments by AIFs climbed 27 per cent over the year to Rs 6.45 trillion as of December 2025, while total funds raised since inception stood at Rs 6.78 trillion

India's AIF industry urges tax parity for private credit funds and clearer rules for Category III AIFs in the upcoming Union Budget to ensure fair treatment and reduce disputes

Domestic fund raising is growing faster amid increased local interest

PFRDA has overhauled NPS investment rules, allowing wider exposure to AIFs, REITs, InvITs, commodities, IPOs and a broader equity universe to boost returns and deepen diversification

India's march toward a $6.6-trillion economy is being powered by booming AIF activity, with commitments touching ₹13.49 lakh crore and domestic investors emerging as major contributors

ASK Property Fund and India Sotheby's International Realty launch a Rs 500 crore equity platform with Amavi by Clarks to invest in branded luxury second homes across key destinations

Markets regulator Sebi on Wednesday extended the timeline to January 31, 2026, for disclosing the allocation methodology by angel funds in their Private Placement Memorandum (PPM). Earlier, the deadline was October 15. "Based on representation from the AIF industry requesting additional time to meet this requirement, it has been decided to extend the said timeline to January 31, 2026, for ease of compliance," Sebi said in its circular. Accordingly, allocation of any investment made by existing angel funds post January 31, 2026, should be in accordance with the defined allocation methodology disclosed in their PPMs. Under the Sebi's framework, angel funds will have to disclose a defined methodology in their PPMs for the purpose of allocating the investment among angel investors who provide approval for such investment. In September, the regulatory framework for angel funds was revised under AIF (alternative investment fund) norms. As part of the revised framework to streamline ...

Duro Opportunities Fund, a Sebi-registered AIF, aims to raise ₹1,000 cr from Indian family offices for concentrated bets on listed companies across sectors

To promote transparency in the Alternative Investment Fund (AIF) ecosystem, Sebi on Friday proposed that AIFs should regularly update the net asset value (NAVs) of their units in the depository system. In its draft circular, Sebi has "proposed to leverage upon the depository infrastructure such that AIFs may be required to maintain updated NAV of the units issued to investors based on valuation of their investments in the depository system". Further, Sebi proposed that AIFs or their Registrar and Transfer Agent (RTA) should upload the NAV of ISINs of all AIF units in the depository system, within 15 days of valuation of the investment portfolio. The valuation date will be taken as the date of the valuation report if done by an external valuer, and as the date it is recorded in the fund's internal records if done by an internal valuer. For existing schemes of AIFs, Sebi said that AIFs or their RTAs should upload the latest NAV of ISINs pertaining to all AIF units in the depository .

Co-investment will allow an accredited investor to take direct exposure to the unlisted asset where the AIF is also investing

Commitments to AIFs rose 20% year-on-year to Rs 14.2 trillion as of June 2025, with funds raised at Rs 6 trillion and investments made at Rs 5.72 trillion

The current minimum threshold for LVF AIFs is Rs 70 crore, which could be brought down to Rs 25 crore after the public consultation process is over

Category III AIFs include hedge funds, quant funds, and those using complex trading strategies

Compliance walls could begin to crack as sovereign and pension money nose their way in

Market outlook: Amid the ongoing conflict in West Asia, surging crude oil prices could pose risk to India's economic stability, Smallcaps preferred over midcaps: PGIM

Rising volatility and evolving macro trends are driving HNIs to invest more in AIFs, which reached ₹5.38 trillion by March 2025, as they move beyond traditional asset classes