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Leading Fund Houses come together to set up the Indian Association of Alternative

The Association of International Wealth Management of India (AIWMI), in conjunction with a number of big-name fund houses, has set up the Indian Association of Alternative Investment Funds (IAAIF). 

IAAIF aims to set standards and provides a voice for the emerging alternative investments sector in India. 

The current Charter Members of IAAIF are Ambit Investment Advisors, Arthveda, Ativir, DSP Blackrock Investment Managers, Edelweiss Alternative Asset Advisors, Harmony Capital, India Infoline Asset Management, IFMR Investment Managersand Unifi Capital, with many other institutions currently in the on-boarding stage. Current Affiliate Members are Milesoft Technologies & Amicorp Trustees. 

India’s alternative investment funds (AIFs), more than doubled during the past year – the fastest among all other traditional investment vehicles such as mutual funds and market-linked insurance products. There are currently 158 Alternative Investment Funds registered with the market regulator Securities & Exchange Board of India (SEBI). Of this, 33 AIFs got capital markets regulator's approval in the first six months of 2015 to operate in the country, 37 secured the nod in 2014, 67 in 2013 and the remaining 21 in 2012. 

Local alternative fund managers, including private equity (PE) and venture capital (VC) funds, have followed their overseas counterparts in pouring money into Indian technology and e-commerce start-ups, triggering a boom in early-stage investments. In addition, prospects of a rebound in India’s economic growth have prompted wealthy investors in the country to embrace riskier investments in private equity, real estate and hedge funds in search of higher returns. 

Considering these trends, the prevailing sense is that the alternatives industry in India is still among the most nimble and adaptive sectors of the financial industry producing tremendous innovation across many aspects of the business. 

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