The AIF industry witnessed a healthy growth of 38% in their AUM in the last one year.
The latest SEBI data shows that the commitments raised (equivalent to AUM in MF parlance) by AIFs has increased to Rs.6.09 lakh crore in December 2021 from Rs. 4.41 lakh crore in December 2020.
A large part of the investment came from Category II funds (81%) that includes real estate funds, private equity funds and funds for distressed assets. These funds offer exposure to assets in which traditional mutual funds schemes cannot invest. Category II funds raised commitments worth Rs.4.95 lakh crore in December 2021 compared to Rs.3.53 lakh crore as on December 2020.
Category III and Category I contributed 10% and 9% to total AIF assets respectively.
Category III, which includes long short funds, long only funds and hedge funds, saw massive growth of 36% in its commitments. The commitment raised in this category has increased to Rs.63699 crore from Rs.46,824 crore in December 2020.
Category I has raised commitments worth Rs.50259 crore as on December 2021. This category of AIFs invests in start-ups or early stage ventures, social ventures, SMEs or infrastructure funds.