Recent research shows that the real estate sector draws the greatest number of AIF investments in India.
The latest SEBI data, gathered by ANAROCK Research, shows that real estate, at around ₹75,468 crore, accounted for the greatest share of the ₹4,49,384 crore in AIF investments made across all industries up until H1 FY2025.
This is about 17% of the total amount that AIFs have invested across an array of industries, including retail, FMCG, pharma, financial services, NBFCs, IT/ITeS, and renewable energy.
Anuj Puri, chairman of the ANAROCK Group, said that the total amount invested in the real estate sector through AIFs increased from “₹68,540 crore by FY 2024-end to ₹75,468 crore.”
“This is a significant 10% growth in just half the financial year,” Puri added.
Additionally, ₹12,801 crore was financed through Qualified Institutional Placements (QIPs) during the same time period, which again ranked second among all major industries.
Other industries that profit from AIF investments include retail (₹11,389 crore), FMCG (₹ 11,680 crore), pharma (₹17,272 crore), financial services (₹25,782 crore), IT/ITeS (₹ 27,815 crore), NBFCs (₹21,503 crore), renewable energy (₹10,672 crore), banks (₹18,242 crore), and others (₹2,29,571 crore).
In the last six years, AIFs’ total commitment increased by almost 340%—from ₹2,82,148 crore in FY 2019 to ₹12,43,083 crore in H1 FY2025.
With a remarkable compound annual growth rate (CAGR) of 83.4% from FY2013 to FY2024, the funds generated in the AIF sector demonstrated its growing importance in the larger investment environment.
AIF funding usually comes primarily from domestic investors, but foreign portfolio investors (FPIs) are gradually becoming more and more important, particularly for Category II AIFs.