India attracted approximately Rs 4.5 lakh crore in Alternative Investment Funds (AIFs) during the first half (H1) of the 2024-25 financial year, driven by strong economic growth among large economies.
According to the latest SEBI data compiled by ANAROCK Research, of the total Rs 4,49,384 crore in AIF investments made across various sectors till H1 FY2025, real estate held the largest share at 17%, totaling nearly Rs 75,468 crore.
Other sectors benefiting from AIF investments include IT/ITeS (Rs 27,815 crore), financial services (Rs 25,782 crore), NBFCs (Rs 21,503 crore), banks (Rs 18,242 crore), pharma (Rs 17,272 crore), FMCG (Rs 11,680 crore), retail (Rs 11,389 crore), renewable energy (Rs 10,672 crore), and others (Rs 2,29,571 crore).
Alternative investment funds in India have witnessed a significant increase in the number of available funds over the past decade. AIFs’ overall commitment rose by more than 340% in the last six years — from Rs 2,82,148 crore in FY 2019 to Rs 12,43,083 crore in H1 FY2025, reflecting a growing appetite for alternative investment strategies.
From FY2013 to FY2024, the commitment raised in the AIF sector maintained an impressive 83.4% compound annual growth rate (CAGR), highlighting its increasing significance in the broader investment landscape.
Anuj Puri, Chairman of ANAROCK Group, said, “Total investments in the real estate sector via AIFs have risen from Rs 68,540 crore by the end of FY 2024 to Rs 75,468 crore in H1 FY2025, marking a notable 10% growth in just half the financial year.”
Puri further added, “A closer look at the data reveals that the surge in AIF activity is largely driven by Category II AIFs, which include a mix of Real Estate Funds, Private Equity, Debt Funds, and Fund of Funds (FoF).”
While domestic investors have traditionally been the main source of AIF funding, foreign portfolio investors (FPIs) are now playing an increasingly significant role, particularly in the case of Category II AIFs. In this category, FPIs now have nearly equal participation alongside domestic investors.
(Inputs from IANS)
