Director Maya Sharan Singh of Lares Algotech Explains Indian Alternative Investment Funds

New Delhi : Investors in India are increasingly looking to alternative investment funds (AIFs) as a way to increase returns and diversify their holdings. According to professionals in the field, AIFs in India have shown encouraging characteristics, indicating a bright future.

Private equity, real estate, hedge funds, and infrastructure are all examples of non-traditional asset types that may be invested in via Alternative Investment Funds. The main goal of AIFs is to connect investors with alternative investment possibilities that might provide greater returns.

Mr. Maya Sharan Singh, Director of Lares Algotech, a leading hedge fund management company , believes that AIFs offer a unique opportunity for investors to diversify their portfolios and generate higher returns. He says, India’s AIF landscape, anchored by retail and HNI investments, is an exciting evolution. This not only democratises investment access but also aligns with the diverse economic goals of the nation. As the Indian financial ecosystem matures, AIFs are poised to play a pivotal role in facilitating economic growth, innovation, and job creation.”

He further adds, “In a testament to the continued success of the hedge fund industry, the combined net worth of the top 20 hedge fund billionaires has reached an impressive $245 billion, this exemplifies the potential for substantial growth and prosperity within the AIF landscape”.

India has grown significantly in recent years, with assets under management (AUM) crossing the INR 6.9 trillion mark in 2022 with a 7x growth from INR 1 trillion in 2017. This growth can be attributed to various factors such as increased investor awareness, a favourable regulatory environment, and the need for alternative investment options in a low-interest-rate environment.

The AIF industry in India has witnessed a surge in interest from both domestic and foreign investors, with several global players entering the market in recent years. AIFs offer investors a unique opportunity to diversify their portfolios and generate higher returns. However, investors need to conduct thorough due diligence and understand the associated risks before investing in an AIF. With a favourable regulatory environment and increasing investor awareness, the AIF industry is poised for continued growth in the coming years.