<span style="font-size: 24px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Sovereign Wealth Fund investments have doubled as compared to previous years, &nbsp;rising from around ₹15,446 crore in FY2022&ndash;23 to ₹47,604 crore in FY2023&ndash;24,which shows an impressive level of confidence in India&#39;s economic potential. These state-owned investment vehicles view India as a strategic market with growth potential and benefits for diversifying portfolios.&nbsp;<span style="font-size: 24px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">India has its own sovereign wealth fund! Did you know that? A staggering $4.9 billion in assets are managed by the National Investment and Infrastructure Fund (NIIF)!&nbsp;<span style="font-size: 24px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">But NIIF is a growth accelerator, not just a data collection tool. By channelling investment into India&rsquo;s infrastructure and other high-growth sectors, it helps bring global capital to our doorstep. For investors in AIFs, this means an added layer of stability and credibility, making the ecosystem more attractive and reliable than ever.Powered by <a href="https://www.froala.com/wysiwyg-editor?pb=1" title="Froala Editor">Froala Editor</a>

<span style="font-size: 24px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The SEBI has introduced relaxed regulatory reforms that are attracting both UHNIs and sovereign wealth funds. In February 2025, SEBI allowed category II AIFs to invest more than 50% of their investable capital in listed debt securities with a credit rating of A or below, thus allowing more flexibility in strategies. These reforms thus demonstrate increased confidence from SEBI in AIFs.<span style="font-size: 24px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The introduction of a Co-investment vehicle (CIV) under AIF in India allows&nbsp;<span style="font-size: 24px; font-family: Roboto, sans-serif; color: rgb(10, 10, 10); background-color: rgb(255, 255, 255); font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&nbsp;SWFs and UHNIs to invest directly in specific unlisted companies alongside the AIF.<span style="font-size: 24px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&nbsp;This enables greater exposure of companies that these individuals can take advantage of.&nbsp;<span style="font-size: 24px; font-family: Roboto, sans-serif; color: rgb(10, 10, 10); background-color: rgb(255, 255, 255); font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The CIV framework includes mandatory documentation, separate accounts, and other regulations that help<span style="font-size: 24px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 400; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">&nbsp;investors understand fund compliance, risk, and transparency before committing their capital. This clarity allows UHNIs to deploy their wealth with greater confidence and trust in the market.Powered by <a href="https://www.froala.com/wysiwyg-editor?pb=1" title="Froala Editor">Froala Editor</a>

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Alternative investment funds (AIFs) are going through an amazing growth path, reaching unprecedented commitments of ₹14.2 trillion as of June 2025, with funds raised touching ₹6 trillion, according to the latest SEBI data.This growth shows a fundamental shift led by two important investment segments: Sovereign Wealth Funds (SWFs) and Ultra High Net Worth Individuals (UHNIs). Both these investors are shaping India's capital markets and establishing India as a preferred destination for alternative investments.

<span style="font-size: 30px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Sovereign Wealth Funds: Institutional Trust in India&#39;s DevelopmentPowered by <a href="https://www.froala.com/wysiwyg-editor?pb=1" title="Froala Editor">Froala Editor</a>

<span style="font-size: 30px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;" data-pasted="true">The UHNI Wealth Explosion: Demographics Driving DemandPowered by <a href="https://www.froala.com/wysiwyg-editor?pb=1" title="Froala Editor">Froala Editor</a>

<span style="font-size: 30px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Regulatory Framework: Building Investor ConfidencePowered by <a href="https://www.froala.com/wysiwyg-editor?pb=1" title="Froala Editor">Froala Editor</a>

<span style="font-size: 30px; font-family: Arial, sans-serif; color: rgb(0, 0, 0); background-color: transparent; font-weight: 700; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Market Dynamics and Investment TrendsPowered by <a href="https://www.froala.com/wysiwyg-editor?pb=1" title="Froala Editor">Froala Editor</a>

How Sovereign Wealth Funds and UHNIs Are Driving India's AIF Growth?