New offerings to enable better investing decisions using comparative data

CRISIL Research has launched sub-category-level benchmarks for the domestic alternative investment fund (AIF) industry. These benchmarks are the logical next step to the original category-level benchmarks introduced in October 2020 and provide peer comparison for AIFs belonging to seven sub-categories within the three broad AIF categories — I, II and III.

The move will usher in granularity and enable metrics-driven investment decision-making by stakeholders in the fast-growing industry, based on due comparison of equivalent funds. The Indian AIF industry continues to grow at a healthy pace, with commitments increasing 42% between March 2021 and March 2022 to Rs 6.41 lakh crore. With investors embracing the product and the industry maturing, there is a need for enhanced benchmarking practices. CRISIL’s sub-category AIF benchmarks will plug this gap, providing like-to-like fund comparison within its category.

The benchmarks have been developed in accordance with the Securities and Exchange Board of India (SEBI) guidelines and in consultation with industry participants.