Alternative Investment Funds (AIFs) in India experienced a significant 30% increase in commitments and funds raised, totaling over ₹12 lakh crore and ₹5 lakh crore respectively, in the year ending September 2024. Investments from AIFs grew by 27%, with private equity and debt funds (Category II) contributing 64% of the total, particularly in real estate. The rise in AIFs is driven by a growing High Networth Individual (HNI) base and increased domestic capital allocation. However, regulatory challenges from the Reserve Bank of India have hindered capital formation, though there is optimism for future reforms to boost AIF growth.