Capital pumped in by AIFs rise to nearly Rs 1.10 lakh in March quarter

The capital pumped in by alternative investment funds rose to nearly Rs 1.10 lakh crore in the January-March quarter this year, an increase of 78.7 per cent from the year-ago period. Alternative investment funds (AIFs) are a class of pooled-in vehicles for investing in real estate, private equity and hedge funds. AIF investments stood at Rs 61,401.57 crore in the March quarter of 2017-18, according to the latest Sebi data.

Of Rs 1.10 lakh crore investment, Category I AIFs poured in Rs 10,893 crore, Category II Rs 68,085.75 crore and Category III Rs 30,801.78 crore. Compared quarterly, AIF investments came in at Rs 92,825.22 crore in the October-December period. AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.

Under the Sebi guidelines, AIFs can operate broadly in three categories, the category-I AIFs are those funds that get incentives from the government and regulators and include social venture, infrastructure and venture capital funds. The category-II AIFs can invest anywhere in any combination, but are prohibited from raising debt, except for meeting their day-to-day operational requirements. The category-III AIFs are those trading with a view to making short-term returns. These AIFs include private equity and debt funds or fund of funds.