Latest news with #AlternativeInvestment
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Business Standard
19 hours ago
- Business
- Business Standard
AIF investments rise 32% to ₹5.38 trillion by March 2025, shows data
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 New Delhi Investments in Alternative Investment Funds (AIFs) by India's high net-worth individuals (HNIs) rose to ₹5.38 trillion by the end of the March 2025 quarter, up 32 per cent from ₹4.07 trillion in the same period last year, according to data from the Securities and Exchange Board of India (Sebi). The increase is linked to rising market volatility and shifting global macroeconomic trends, prompting affluent investors to diversify their portfolios and reduce exposure to traditional asset classes. The move towards AIFs reflects a growing interest in investment options that provide broader risk management and are less correlated with public markets. These evolving market conditions are encouraging HNIs to move away from conventional assets like equities and fixed income instruments, according to a report by Multi-Act Trade and Investments, an investment advisory firm. AIFs are privately pooled investment vehicles regulated by Sebi, which invest in line with a defined strategy. They are classified into three categories: Category I includes venture capital and infrastructure funds; Category II covers private equity and debt funds; and Category III consists of hedge funds and other complex strategies. These funds are typically accessed by institutional and wealthy investors. The trend marks a notable shift in allocation strategies among HNIs and family offices, with many focusing on private market opportunities that allow for longer investment horizons. 'Family office portfolios have a really long horizon, so their ability to participate in private investments is much higher than most other investors,' the report stated. The appeal of AIFs lies in their potential to deliver higher returns and offer stability during periods of market stress. The surge in interest has been driven by the need for diversification, a hedge against inflation, and access to expert fund management. HNIs are investing across a wide range of segments including private equity, venture capital, credit strategies, real estate-focused AIFs, long-short hedge funds, and other portfolio management strategies. Younger investors, in particular, are showing interest in ESG-linked funds, climate-tech ventures, and sustainable finance vehicles.
Mint
21 hours ago
- Business
- Mint
AIFs gain traction as investments rise 32 pc to ₹5.38 lakh cr by March 2025
New Delhi, India's affluent investors are increasingly turning to Alternative Investment Funds , with investments in the space reaching ₹ 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 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. The appeal of these alternatives is driven by their potential to offer higher returns as well as stability during periods of market stress. "As HNIs navigate persistent volatility, global macroeconomic shifts, and a low-yield environment, the demand for diversified and resilient portfolios is on the rise," Multi-Act noted. To support this view, Sebi data showed that cumulative investments in Indian AIFs surged 32 per cent year-on-year to ₹ 5.38 lakh crore in Q4 FY2025 from ₹ 4.07 lakh crore in Q4 FY2024. This suggests a clear shift in asset allocation strategy among HNIs and family offices. "Family office portfolios have a really long horizon, so their ability to participate in private investments is much higher than most other investors," the firm added, highlighting a key advantage that allows these entities to engage in alternative assets. Multi-Act attributed this increase to a combination of factors such as the need for diversification, a hedge against inflation, and access to expert management. AIFs have been divided into three categories I, II, and III covering early-stage venture capital, private equity, private credit, infrastructure, and long-short hedge strategies each offering a unique mix of risk, return potential, and liquidity. By allocating across these diverse strategies, HNIs can reduce their dependence on public markets, manage concentration risks more effectively, and build investment portfolios that are structurally more resilient across market cycles. Moreover, HNIs are allocating across a diverse range of alternative asset classes such as private equity & venture capital, real estate AIFs, hedge funds & PMS strategies, credit alternatives, and sustainable & impact alternatives. As per the investment advisory firm, many young affluents prefer ESG-themed AIFs, climate-tech venture funds, to blended finance vehicles and sustainable alternatives. According to Knight Frank Global Wealth Report 2025, India is now home to 85,698 individuals with assets exceeding USD 10 million. This accounts for 3.7 per cent of the world's ultra-wealthy population, positioning India fourth globally after the US , China , and Japan . This article was generated from an automated news agency feed without modifications to text.
Mint
21 hours ago
- Business
- Mint
AIFs gain traction as investments rise 32 pc to ₹5.38 lakh cr by March 2025
New Delhi, India's affluent investors are increasingly turning to Alternative Investment Funds , with investments in the space reaching ₹ 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 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. The appeal of these alternatives is driven by their potential to offer higher returns as well as stability during periods of market stress. "As HNIs navigate persistent volatility, global macroeconomic shifts, and a low-yield environment, the demand for diversified and resilient portfolios is on the rise," Multi-Act noted. To support this view, Sebi data showed that cumulative investments in Indian AIFs surged 32 per cent year-on-year to ₹ 5.38 lakh crore in Q4 FY2025 from ₹ 4.07 lakh crore in Q4 FY2024. This suggests a clear shift in asset allocation strategy among HNIs and family offices. "Family office portfolios have a really long horizon, so their ability to participate in private investments is much higher than most other investors," the firm added, highlighting a key advantage that allows these entities to engage in alternative assets. Multi-Act attributed this increase to a combination of factors such as the need for diversification, a hedge against inflation, and access to expert management. AIFs have been divided into three categories I, II, and III covering early-stage venture capital, private equity, private credit, infrastructure, and long-short hedge strategies each offering a unique mix of risk, return potential, and liquidity. By allocating across these diverse strategies, HNIs can reduce their dependence on public markets, manage concentration risks more effectively, and build investment portfolios that are structurally more resilient across market cycles. Moreover, HNIs are allocating across a diverse range of alternative asset classes such as private equity & venture capital, real estate AIFs, hedge funds & PMS strategies, credit alternatives, and sustainable & impact alternatives. As per the investment advisory firm, many young affluents prefer ESG-themed AIFs, climate-tech venture funds, to blended finance vehicles and sustainable alternatives. According to Knight Frank Global Wealth Report 2025, India is now home to 85,698 individuals with assets exceeding USD 10 million. This accounts for 3.7 per cent of the world's ultra-wealthy population, positioning India fourth globally after the US , China , and Japan .
Business Standard
15-05-2025
- Business
- Business Standard
AIFs seek Sebi help to address inter-regulatory issues and ease norms
In a bid to attract greater investments from financial institutions, the Alternative Investment Funds (AIFs) industry has urged the Securities and Exchange Board of India (Sebi) to facilitate inter-regulatory discussions with other financial watchdogs, including the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA). The Indian Venture and Alternate Capital Association (IVCA) made the request during a meeting with the Sebi Chairman last week, citing the market regulator's role as the principal overseer of the industry. Sebi has already begun consultations with industry players and
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Business Standard
21-04-2025
- Business
- Business Standard
Indian real estate attracts nearly Rs 74K cr till Dec'24 from AIFs: Anarock
Alternative Investment Funds (AIFs) have cumulatively infused nearly Rs 74,000 crore in the Indian real estate space till December 2024, highest among all sectors, according to property consultant Anarock. AIF means any fund established or incorporated in India which is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors. Real estate consultant Anarock has compiled Sebi data related to AIFs, which invest in non-traditional assets like private equity, hedge funds, and real estate - offer niche, high-risk, high-reward opportunities suited for experienced investors. Till December 2024, AIFs have cumulatively invested Rs 5,06,196 crore across all sectors. The real estate sector accounted for the largest share of 15 per cent of cumulative net AIF investments at Rs 73,903 crore. "The rise of AIFs has significantly transformed real estate financing in India, offering a crucial lifeline to projects struggling with lack of funding and unlocking new opportunities for developers," Anarock said. AIFs have invested Rs 30,279 crore in IT/ITeS, Rs 26,807 crore in financial services, Rs 21,929 crore in NBFCs, Rs 21,273 crore in banks, Rs 18,309 crore in pharma, Rs 12,743 crore in FMCG, Rs 11,550 crore in retail and Rs 11,433 crore in the renewable energy sector. Other sectors received Rs 2,77,970 crore from AIFs. Prashant Thakur, Regional Director & Head Research at Anarock Group, said, "Amidst increasing constraints on traditional funding sources, AIFs are an agile and innovative financing mechanism to address capital gaps at various stages of real estate development." "Since they pool capital from domestic and foreign investors, AIFs are a sustainable and scalable funding ecosystem. Going forward, the adoption of blended finance models, AI-driven risk assessments, and streamlined regulatory frameworks maximise the impact of AIFs further," he added. The number of AIF active in the market has grown 36-fold over the past decade - from 42 by March 31, 2013, to 1,524 AIFs as of March 5, 2025, with commitment raised increasing five-fold since 2019. Commenting on the report, Mumbai-based Mt. K Kapital Founder and Managing Director Binitha Dalal said, "Real estate's continued dominance in AIF allocations is a natural outcome of how investors are rethinking their portfolios. Real assets are now being approached as part of financial portfolios, not just physical holdings." "This shift reflects not only a change in mindset, but also the increasing availability of new funds and structures tailored to varied risk-return profiles. It's a clear indicator of the market's depth and evolution- real estate today is as much a financial product as it is a physical asset," she said. Ankur Jalan, CEO of Golden Growth Fund, said the AIFs have become an important investment vehicle for institutional investors and HNIs, and have also widened the scope for developers to secure funding. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
