Domestic Investors Pour ₹1.14 Trillion Into AIFs Over 18 Months: Crisil Report

India’s alternative investment fund industry has seen a marked rise in domestic participation, with fresh capital flows strengthening the local funding base. 

Domestic Participation Rises to 55.3% 

According to the 3rd edition of No Ifs About AIFs, a benchmark-led study by Crisil Limited and Oister Global, domestic investors contributed ₹1.14 trillion to Category I and II AIFs over 18 months to September 2025. 

Domestic investors accounted for 55.3% of Category I and II AIF capital in September 2025, up from 50.3% in March 2024. The report noted, “That indicates the industry is building a more self-sustaining, locally anchored capital base, reducing its reliance on foreign capital.” 

Cumulative commitments across Category I, II and III AIFs reached ₹15.05 trillion as of September 2025, registering a CAGR of 30.7% between FY21 and H1 FY26. 

Distributions, Alpha and Deal Trends 

As of March 2025, nearly 80% of benchmarked equity AIF schemes had made distributions, around 25% returned full paid-in capital, and top quartile funds delivered over 2 times distributions to paid-in capital or DPI. 

Sandeep Sinha, Co-CEO and Co-founder of Oister Global, said, “Across seven benchmarking cycles through March 2025, unlisted equity AIFs generated an average alpha of about 8.69% over the BSE Sensex Total Return Index.” 

The report also highlighted that transactions above ₹50 crore accounted for 90% of total deal value in FY25, indicating a tilt towards larger, governance-ready businesses. 

Read More: New Series of GDP, CPI and IIP Release Schedule Announced for 2026! 

Conclusion 

With ₹1.14 trillion added by domestic investors and total commitments at ₹15.05 trillion, AIFs are expanding rapidly, supported by rising local participation, larger deal sizes and consistent benchmark outperformance. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Mutual Funds Investments are subject to market risks, read all the related documents carefully before investing.