New Delhi, March 3 -- India's alternative investment fund (AIF) framework has undergone sweeping changes over the past six months, with reforms in September 2025 and February 2026 reshaping how accredited investors participate in private markets.

ranging from co-investment vehicles and accredited investors (AI) only schemes to extended fund tenures and lower entry barriers for social funds-aim to deepen the private capital ecosystem. But greater flexibility comes with higher complexity, concentration risk and liquidity trade-offs that investors must evaluate carefully.

Rajan Arora, a 42-year-old entrepreneur from Firozpur, allocates 10-20% of his portfolio to AIFs. Unlike mutual funds that pool in investors' money to invest primarily in...