Archive · 19 Dec 2025
AIF Investments Surge Amid Accredited Investor Shortage
Alternative Investment Funds (AIFs) in India have increased their investments in companies listed on the stock market by nearly 50% compared to last year.
This is because the stock market had some price drops, making it a good time to invest.
However, there are not enough accredited investors, which are people who meet certain financial criteria to invest in special funds.
The industry says it's hard to launch new funds for these investors because there are too few of them.
The government is trying to make it easier for people to become accredited investors, but right now, many investors prefer not to go through the process.
Experts think this trend of investing in the stock market will continue, but the lack of accredited investors is a big challenge.
AIF investments in listed securities surged 48.35% year-on-year till September-end.
Total investments in listed securities stood at Rs 1,98,950 crore as of September 2024.
AIFs raised Rs 5.01 lakh crore by September 2024, with investments of Rs 4.49 lakh crore.
Market correction in 2024 created opportunities for AIFs to invest in quality stocks.
Experts believe the trend of increased investments in listed securities will continue, but the low number of accredited investors is a challenge for launching AI-only funds.
- Who
- Alternative Investment Funds (AIFs) and Accredited Investors
- What
- AIF investments in listed securities surged 48.35% year-on-year till September-end, while the number of accredited investors remains low.
- When
- As of September 2024 and September 2025
- Where
- India
- Why
- Due to market correction and opportunities in listed equity markets, but the low number of accredited investors is a challenge for launching AI-only funds.
Industry Players
SEBI
Feasibility of AI-Only Funds
Industry Players
Industry players believe it is not feasible to launch AI-only funds due to the low number of accredited investors (around 650) and the lack of flexibility in the accreditation process.
SEBI
SEBI is working on smoothing the accreditation process and increasing awareness to attract more accredited investors, indicating potential future developments to address these concerns.
Attractiveness of Accreditation
Industry Players
Investors find the accreditation process unattractive due to high fees and the ability to invest in AIFs without disclosing asset details.
SEBI
SEBI acknowledges the need to make the accreditation process more attractive and is considering regulatory flexibility to enhance the appeal of AI status.
- Investment Increase
- 48.35%
- Total Investment in Listed Securities (Sep 2024)
- Rs 1,98,950 crore
- Total Investment in Unlisted Securities (Sep 2024)
- Rs 3,76,039 crore
- Cumulative Funds Raised (Sep 2024)
- Rs 5.01 lakh crore
- Cumulative Funds Raised (Sep 2025)
- Rs 6.36 lakh crore
- Cumulative Investments (Sep 2025)
- Rs 6.12 lakh crore
- Number of Accredited Investors
- Around 650
- One-Time Processing Fee for Accreditation
- Rs 5,000
- Two-Year Certification Fee for Individuals/HUFs/Trusts
- Rs 5,000
- Three-Year Certification Fee for Individuals/HUFs/Trusts
- Rs 9,500