Mumbai, Dec 2 (NationPress) India has secured roughly ₹4.5 lakh crore through alternative investment funds (AIFs) in the first half (April to September) of the financial year (FY) 2024-25, propelled by strong economic growth across major economies.

Recent statistics from SEBI, compiled by ANAROCK Research, reveal that out of the total ₹4,49,384 crore in AIF investments across various sectors by H1 FY2025, real estate accounted for the largest share at 17 percent, amounting to nearly ₹75,468 crore.

Other sectors benefiting from AIF investments include IT/ITeS (₹27,815 crore), financial services (₹25,782 crore), NBFCs (₹21,503 crore), banks (₹18,242 crore), pharmaceuticals (₹17,272 crore), FMCG (₹11,680 crore), retail (₹11,389 crore), renewable energy (₹10,672 crore), and others (₹2,29,571 crore).

The alternative investment funds sector in India has experienced a remarkable decade-long growth in the number of funds available for investment. The total commitment to AIFs has surged by over 340 percent in the past six years, rising from ₹2,82,148 crore in FY 2019 to ₹12,43,083 crore in H1 FY2025, indicating a growing interest in alternative investment strategies.

From FY2013 to FY2024, the funds raised in the AIF sector have shown an impressive 83.4 percent compound annual growth rate (CAGR), highlighting its increasing significance in the overall investment ecosystem.

Anuj Puri, Chairman of ANAROCK Group, commented, "Investments in the real estate sector through AIFs have grown from ₹68,540 crore at the end of FY 2024 to ₹75,468 crore in H1 2025. This marks a noteworthy 10 percent increase in just half of the financial year."

Puri further noted, "An analysis of the data indicates that the increase in AIF activity is primarily being driven by Category II AIFs, which comprise a range of Real Estate Funds, Private Equity, Debt Funds, and Fund of Funds (FoF).

Traditionally, domestic investors have been the main source of funding for AIFs. However, foreign portfolio investors (FPIs) are also increasing their participation, particularly in the Category II AIFs, where FPIs now have nearly equal involvement alongside domestic investors.