Key Takeaways
- • SEBI data for September 2025 shows Category III AIF commitments rising to Rs 2.92 lakh crore, with cumulative investments crossing Rs 2,01,720 crore, the fastest growth across all AIF categories that year.
- • An industry report by the Indian Venture and Alternative Capital Association (IVCA), 360 ONE and Crisil Intelligence finds that several AIF strategies have consistently outperformed bank fixed deposits, government bonds, gold and the BSE Sensex.
- • Venture capital and private equity AIFs have delivered higher pooled returns than the Sensex across multiple market cycles, even as public equity returns have grown more volatile.
- • A large share of recent AIF inflows is going into high-conviction equity and long-short strategies, which the article links to high-net-worth individuals (HNIs) taking more risk in a range-bound market.
Summary
The Financial Express frames alternative investments as a key theme for 2026, following a year it describes as volatile and shaped by both a technological revolution and geopolitical realignment. The article positions alternatives as a complement to conventional asset classes such as equities and commodities, with a focus on segments that have proven resilient to global uncertainty. Its headline cites three routes: Alternative Investment Funds (AIFs), global investing and art. The available text covers AIFs in detail, and the other two routes are referenced only in the headline and standfirst.
On AIFs, the article cites an industry report by the Indian Venture and Alternative Capital Association (IVCA), 360 ONE and Crisil Intelligence. According to the report, several AIF strategies have consistently outperformed traditional assets, including bank fixed deposits, government bonds, gold and the BSE Sensex. Venture capital and private equity AIFs, in particular, have delivered higher pooled returns than the Sensex across multiple market cycles, a period in which public equity returns have become more volatile amid global uncertainty.
The article also cites Securities and Exchange Board of India (SEBI) figures for September 2025. Commitments to Category III AIFs reached Rs 2.92 lakh crore, and cumulative investments crossed Rs 2,01,720 crore, the fastest growth of any AIF category that year. The article notes that a large portion of these flows is moving into high-conviction equity and long-short strategies, which it presents as evidence of a shift in how HNIs approach risk in a volatile, range-bound market.
On AIFs, the article cites an industry report by the Indian Venture and Alternative Capital Association (IVCA), 360 ONE and Crisil Intelligence. According to the report, several AIF strategies have consistently outperformed traditional assets, including bank fixed deposits, government bonds, gold and the BSE Sensex. Venture capital and private equity AIFs, in particular, have delivered higher pooled returns than the Sensex across multiple market cycles, a period in which public equity returns have become more volatile amid global uncertainty.
The article also cites Securities and Exchange Board of India (SEBI) figures for September 2025. Commitments to Category III AIFs reached Rs 2.92 lakh crore, and cumulative investments crossed Rs 2,01,720 crore, the fastest growth of any AIF category that year. The article notes that a large portion of these flows is moving into high-conviction equity and long-short strategies, which it presents as evidence of a shift in how HNIs approach risk in a volatile, range-bound market.
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