According to Sebi data, the AIF industry has demonstrated robust annual growth of 30% during FY22-23. Category II AIFs, which include debt funds, stood out with the largest share of overall AUM at INR6.94 lakh crore in March 2023. However, AIFs come with their own set of risks. Hence, a proper risk-management framework is a must.
Private credit has emerged as a new investment category offering investors access to well-diversified fixed income portfolios managed by investment professionals.
The Securities & Exchange Board of India (Sebi), which does not want any blowup in these alternative investment funds (AIFs) that have emerged as one of the country s fastest-growing asset classes, has asked the industry to find ways to discipline the bad actors.