Indian HNIs Shift to AIFs for Smarter Returns: Puneet Sharma of WhiteSpace Alpha Decodes the Trend

India’s high-net-worth individuals (HNIs) are increasingly turning to Alternative Investment Funds (AIFs) to diversify portfolios, enhance returns, and navigate market volatility with precision. According to Puneet Sharma, CEO and Fund Manager at WhiteSpace Alpha, this shift reflects a growing appetite for non-traditional strategies, risk-adjusted performance, and customized wealth solutions. Speaking to Business Today on October 17, 2025, Sharma highlighted that Category III AIFs—which focus on hedge fund-like strategies—are attracting sophisticated investors including family offices, corporates, and ultra-HNIs.

With a minimum ticket size of ₹1 crore, AIFs are designed for investors who understand the nuances of active management, sector rotation, and tactical asset allocation. Sharma emphasized that AIFs offer flexibility, transparency, and access to alpha-generating ideas that are often unavailable in mutual funds or PMS structures.

🧠 Key Highlights from Puneet Sharma’s AIF Strategy Insights

Sharma noted that AIFs are increasingly being used to hedge equity exposure, capture macro trends, and generate consistent returns across cycles.

📊 Timeline of AIF Growth Among Indian HNIs

India’s ultra-rich population is projected to grow 50% by 2028, further fueling AIF adoption.

🗣️ Reactions from Wealth Managers, Investors, and Analysts

• Wealth Advisor, Mumbai: “HNIs want control, customization, and clarity—AIFs deliver all three.”
• Investor in Category III AIF: “The ability to hedge and rotate sectors is a game-changer.”
• Market Strategist: “AIFs are the new frontier for alpha in India.”

Sharma also stressed the importance of manager pedigree, strategy transparency, and risk controls when selecting AIFs.

🧾 Comparative Snapshot: AIFs vs Traditional Investment Vehicles

Sharma recommends AIFs for investors who seek volatility protection, macro exposure, and non-correlated returns.

🧭 What to Watch in India’s AIF Landscape

• Regulatory Evolution: SEBI may ease onboarding norms and enhance disclosures
• Strategy Innovation: Rise of AI-driven and ESG-focused AIFs
• Investor Education: More HNIs exploring structured products and hybrid AIFs
• Performance Benchmarks: Category III AIFs outperforming Nifty in volatile phases

Sharma concluded, “AIFs are not just about returns—they’re about resilience, relevance, and responsibility.”

Disclaimer

This news content is based on verified interviews, regulatory data, and media reports as of October 18, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice, product endorsement, or financial forecasting and adheres to ethical journalism standards.

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Sources: Business Today | MSN Business Today