Alternative Investment Funds in India: A Theoretical Perspective

Abstract

Alternative Investment Funds (AIFs) have emerged as a vital segment in the Indian financial ecosystem, providing investors with diversification, higher yield potential, and exposure to non-traditional asset classes. This paper examines the evolution, categorization, regulatory framework, and theoretical implications of AIFs in India. Through a review of secondary literature and regulatory documentation, the study aims to identify key opportunities and challenges in the AIF space. Findings suggest that while the AIF market is expanding due to regulatory reforms and investor interest, issues around liquidity, transparency, and compliance continue to need attention.