<h1>Alternative Investment Fund commitments hit Rs 13.5 lakh crore with 30% growth rate as investors seek higher returns</h1> India's alternative investment market is experiencing rapid growth as family offices, corporates, and institutional investors seek higher returns with lower volatility than equities. Alternative Investment Fund commitments reached Rs 13.5 lakh crore by March 2025, growing Rs 1.7 lakh crore year-over-year with a 30% compound annual growth rate over five years. The segment is projected to grow nearly tenfold from Rs 25,000-40,000 crore in FY23 to Rs 2 lakh crore by 2027. Alternative debt funds currently offer yields of 16-18%, significantly higher than traditional fixed income options. Industry experts note the global private debt market is valued at USD 2.5 trillion. While these investments present opportunities for enhanced portfolio returns and diversification, experts emphasize the importance of due diligence and understanding associated risks, particularly regarding collateral quality and fund manager approaches.