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ARTICLE · 24 FEBRUARY 2023

Tightening The Screws On AIFs

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Recent years have seen the increasing relevance of alternative investment funds as a sought-after asset class in the Indian investment landscape.

IndiaFinance and Banking
Sandeep Parekh
Sandeep Parekh
Raghuvamsi Meka
Raghuvamsi Meka
Rashmi Birmole
Rashmi Birmole
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Recent years have seen the increasing relevance of alternative investment funds as a sought-after asset class in the Indian investment landscape. According to the data released by the Securities and Exchange Board of India (SEBI), the Alternative Investment Funds (AIFs) industry has grown by 42% from June 2021 alone, and an impressive 600% from June 2017 in terms of allocations received from investors. While the contributing factors supporting this growth warrant a separate discussion of their own, the momentum of AIFs can be primarily traced to its ability to offer bespoke diversified investment avenues to affluent and sophisticated investors. The growing base of potential acquirers has also reduced the liquidity risk in private markets and supplemented AIFs' perception as popular and innovative instruments.

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