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 Investments 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 Volativity and Shifting Global Macroeconomic Conditions, Prompting The Wealthy To Seek More Diversified and Resilient Portfolio options, accorded to investments 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 inc LUDE PRIVATEY EQUEDGE 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 Volativity, Global Macroeconomic Shifts, and a Low-Yield Environment, The Demand For Diversified and Resilient Portfoli is on the Rise,” Multi-CATI-CATITEDED.

To support this view, sebi data showed that cumulative investments in Indian aifs surgged 32 per cent year-on-year to 5.38 Lakh Crore in Q4 FY2025 From 4.07 Lakh Crore in Q4 FY2024. This sugges a clear shift in asset allocation strategy among hnis and family offices.

“Family Office Portfolios Have a Really Long Horizon, so his ability to participate in private investments is much higher than most investors,” the firm added, highlighting a key advantage that thes 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 Heedge Strategies Each Offering Ach Offering A Unique mix of risk, return potential, and liquidity.

By allocating across these divese strategies, hnis can reduce their dependence on public markets, manage concentration risks more effectively, and buy investment portfolios that is structurially more Across Market Cycles.

Moreover, HNIS are allocating Across a divese range of Alternative Asset Classes Sustainable & Impact Alternatives.

As per the investment Advisory Firm, Many Young Affluents Prefer ESG-Laned 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 exaceding usd 10 million. This accounts for 3.7 per centra-ultra-weeky population, position India fourth globally after the US, China, and Japan.

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