New Delhi:
The alternative investment fund (AIF) in India has invested Rs five lakh crore in the last nine months (April-December), out of which the highest investment of Rs 73,903 crore was made in the real estate sector.

What are AIF

AIFs are privately collected funds, which invest in non-traditional assets such as private equity, hedge funds and real estate. It also offers high-relief opportunities for experienced investors with high-risk.

Real estate sector dominated

According to EnaRock Research, the real estate sector won the largest stake in cumulative net AIF investments with 15 percent, with Rs 73,903 crore out of the total Rs 5,06,196 crore in all areas in the April-December of FY 2025.

Increase in the first three quarter

Let us know that in the first three quarters of FY 2025, the investment in real estate sector has increased by 8 percent. A report said, “AIF investment in real estate by the end of 9 months of FY 2025 increased from Rs 68,540 crore to Rs 73,903 crore by the end of FY 2024, which is a commendable increase of 8 percent in the first three quarters of FY 2025.

Benefits in in-in areas

Other areas benefiting from AIF investment include IT/ITES, Financial Service, NBFC, Bank, Pharma, FMCG, Retail, Renewable Energy and others.

IAF continues to boom

The number of AIFs active in the market has increased by 36 times in the last decade, which has increased from 42 to March 5, 2025 to 1,524 AIF by 31 March 2013, with five times the increase from 2019.

It is worth noting that between FY 2013 and FY 2025, the commitment raised in AIF has seen a CAGR increase of 83.4 percent.

AIF a Sustainable Funding Ecosystem

Prashant Thakur, Regional Director and Head of Research Group, said, “Amid growing obstacles on traditional funding sources, AIF is an innovative financing mechanism to remove capital gaps in various stages of real estate development, because, they raise capital from domestic and foreign investors, hence AIF is a sasenable and scalable funding ecosterium”

He said that the impact of AIF increases further by adopting the blended finance model, AI-Drivan Risk Assessment and well-organized regulatory structure. This boom in commitments is mainly associated with Category-II AIF, which is contributing about 80 percent in the last five financial years.

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(Tagstotranslate) real estate investments