New Delhi: Capital put in by alternative investment funds (AIFs) has risen to nearly ₹ 75,000 crore at the end of the April-June quarter of the current fiscal year, a surge of 90% from the year-ago period.
AIFs are a class of pooled-in vehicles for investing in real estate, private equity and hedge funds and over 270 such funds are registered with the Securities and Exchange Board of India (Sebi) since 2012.
The investment made by AIFs stood at ₹ 74,893 crore during the three months ended June 2018, much higher than ₹ 39,308 crore invested in the same quarter last year, according to latest data available with Sebi. At the end of the March quarter, capital infused by AIFs was ₹ 61,400 crore.
Category I AIFs poured in ₹ 8,955 crore, Category II ₹ 41,710 crore and Category III ₹ 24,228 crore.
The regulator, in May 2012, notified guidelines for this class of market intermediaries. At the end of December 2012, they pumped in just ₹ 20 lakh, which has now jumped to close to ₹ 75,000 crore.
AIFs are funds established or incorporated in India for the purpose of pooling capital from Indian and foreign investors for investing as per a pre-decided policy.
In Sebi guidelines, AIFs can operate broadly in three categories. Category I AIFs are those funds that receive incentives from the government and regulators and include social venture, infrastructure and venture capital funds.
Category II AIFs can invest anywhere in any combination, but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include private equity and debt funds or fund of funds.
Category III AIFs are those trading with a view to making short-term returns and include hedge funds.