AIFs gain traction as investments rise 32 pc to ₹5.38 lakh cr by March 2025
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
30 minutes ago
- Hindustan Times
Female security, CCTV surveillance: How Delhi govt is making night shifts safer for women
The Delhi government has cleared a proposal allowing women to work night shifts in shops and commercial establishments, Chief Minister Rekha Gupta announced on Tuesday. Delhi CM Rekha Gupta emphasised that robust safeguards will be put in place to ensure the safety and welfare of women working during night hours.(ANI) The move aims at increasing women's participation in the workforce and transforming Delhi into a round-the-clock business hub, she said. Calling it a "historic decision", Gupta said the step marks a significant push towards women's economic empowerment and self-reliance. She also emphasised that robust safeguards will be put in place to ensure the safety and welfare of women working during night hours. "Delhi will now join the list of states like Haryana, Telangana, Madhya Pradesh and Tamil Nadu, where women are permitted to work in night shifts," the chief minister said. "This policy is not just about extending work hours but it is a statement of our intent to create a safer, more inclusive working environment for women in the national capital," Gupta said. Under the proposed framework, employers will be required to obtain written consent from female employees before assigning night shifts, according to a statement. Establishments must provide transport facilities, CCTV surveillance, female security staff and all basic amenities including toilets, restrooms and lockers, it said. Formation of Internal Complaints Committees, as mandated by the Prevention of Sexual Harassment (POSH) Act, will also be compulsory, the statement further said. It also mentioned that the decision involves amendments to the Delhi Shops and Establishments Act, 1954, which currently restricts women from working between 9 pm and 7 am in summer and between 8 pm and 8 am in winter. Once cleared by the Lieutenant Governor, the exemptions will formally allow women to work round the clock, it added. As per the statement, to ensure fair treatment of night shift workers, employers must also ensure electronic wage transfers, statutory benefits such as ESI, PF and bonuses, along with weekly offs and overtime pay. "This step will make Delhi a more business-friendly destination while reinforcing our commitment to gender parity at the workplace," the chief minister added.
Indian Express
30 minutes ago
- Indian Express
Donald Trump warns India of 25% tariffs if trade deal not reached
US President Donald Trump on Tuesday said that Indian imports could face tariffs as high as 25% if the two countries are unable to finalise a trade agreement soon. 'They are going to pay 25%,' Trump told reporters, according to CNN. When asked whether India would be charged tariffs between 20% and 25%, Trump replied, 'Yeah, I think so. India has been; they're my friends.' The United States and India have been discussing a trade deal for months, but no final agreement has been reached. Trump has been pressing for greater access for American goods to the Indian market. He has often made similar demands in other trade negotiations. US Trade Representative Jamieson Greer said further talks would be needed to move things forward. 'They have expressed strong interest in opening portions of their market,' Greer said in an interview with CNBC on Monday, as reported by CNN. 'We, of course, are willing to continue talking to them. But I think we need some more negotiations on that with our Indian friends to see how ambitious they want to be.' This is a developing story
&w=3840&q=100)
Business Standard
30 minutes ago
- Business Standard
India braces for higher US tariffs, eyes broader trade deal: Report
India is preparing to face higher US tariffs likely between 20 per cent and 25 per cent on some of its exports as a temporary measure, as it holds off on fresh trade concessions ahead of Washington's August 1 deadline, two Indian government sources said. Instead, New Delhi plans to resume broader trade negotiations when a US delegation visits in mid-August, with the goal of finalising a comprehensive bilateral agreement by September or October, one of the Indian officials told Reuters. "Talks are progressing well, and a delegation is expected in Delhi by mid-August, one of the Indian government officials said, adding that President Donald Trump could issue a tariff letter imposing duties of 20 or 25 per cent in a "worst-case scenario". "However, we assume it would be a temporary measure, considering the five rounds of trade talks that have taken place. A deal will soon be worked out, the official said. US Trade Representative Jamieson Greer told CNBC on Monday that talks with India required more negotiations as Trump was more interested in good deals than quick deals. India has shown "strong interest in opening portions of its market" though its trade policy had long focussed on protecting domestic interests, Greer said. Piyush Goyal, India's trade minister, told Reuters last week India is making "fantastic" progress in US trade talks. Indian officials said New Delhi has offered tariff cuts on a wide range of goods and is working to ease non-tariff barriers. However, agriculture and dairy remain no-go areas, with India unwilling to allow imports of genetically modified soybean or corn, or to open its dairy sector. Total bilateral goods trade reached about $129 billion in 2024, with India posting a trade surplus of nearly $46 billion. India is holding back on fresh offers while calibrating its strategy amid broader US tariff threats targeting BRICS nations, including India, over issues such as de-dollarisation and purchases of Russian oil, said another official. "We remain hopeful of securing a deal that gives Indian exporters preferential access compared to our peers," the official said. Officials spoke on condition of anonymity as they were not authorised to speak to media. India's commerce ministry and the US Trade Representative's Office did not immediately respond to emailed requests for comments. "We need more negotiations with our Indian friends to see how ambitious they want to be," Greer said. Analysts said, without a deal, Indian exports could face average US tariffs of around 26 per cent, higher than those faced by Vietnam, Indonesia, Japan or the European Union.
