MUMBAI: Despite the Reserve Bank capping investments by banks and other financial institutions in alternate investment fund (AIF) schemes at 10%, overall investor commitments to AIFs rose 20% on-year to a record Rs 14.2 trillion as of June 2025, with funds raised touching Rs 6 trillion and deployments from such funds crossing Rs 5.72 trillion, according to Sebi data.
The AIF industry has been rocking with the rising inclination of ultra high-networth individuals and family offices to deploy their monies in high yielding investment options like AIFs. These schemes have gained traction also because of their ability to diversify investments in early stage startups, unlisted assets, and complex trading strategies. As a result the total commitments for AIFs surged to Rs 14.2 trillion as of June 2025, which is a 20% jump on-year and 5% growth sequentially.
Also, total funds raised inched closer to Rs 6 trillion mark while total investments made through such funds rose to Rs 5.72 trillion, according to the latest data from the Securities and Exchange Board (Sebi).
AIFs are pooled investment vehicles catering to the niche segment with high entry investments. Recently, the market regulator has pushed for accreditation among investors for certain schemes.
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