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India’s alternative investment market for the past 10 years has been on an upward trend, and this trend continues to be largely responsible for the spurt of the sector to faster and higher levels of growth. This was mainly driven by affluent consumers, a focus on diversified strategies, and the rise of new financial hubs like GIFT City.
The most substantial growth trend over the decade has been borne out by the expansion of the assets under management in India for alternative investment funds (AIFs) from ₹27,484 crores in 2015 to ₹1,505,372 crores by 2025 at a CAGR of almost 50%. The bulk of this growth has been powered by Category II and III AIFs, which deploy the investment through private equity, private credit, hedge funds, and structured product areas. The jump to ₹11,20,589 crore for Category II only has been phenomenal, with Category III following suit and growing up to ₹2,92,398 crore, which is indicative of the market readiness for deeply researched and diversified investment portfolios.
The story of growth for the PMS side has also been upward and thus has caught the attention of the public. PMS assets under management have expanded from ₹1.27 lakh crore in 2015 to ₹8.37 lakh crore by September 2025, thereby marking a ten-year period of CAGR at 20.75%. This evolution signals a profound transformation among the rich investors, who are now more inclined to choose duly managed, research-driven portfolios.
The upward movement will be further consolidated as the Indian rich population keeps growing. A significant rise in the number of people with a net worth of $1 million and more is expected for the year 2030, thus providing the basis for the demand for tailor-made investment strategies, deeper diversification, and more alpha-generating opportunities to go up.
With these structural tailwinds, the Indian AIF & PMS ecosystem is set to be the next chapter in the transformation story. Only a few of the characters that will have an increasingly deeper role in the drama of capital allocation are sophisticated investment solutions, institutional-grade practices, and GIFT City, projected as one of the next emerging financial centers.
