Several years ago, the discussion of alternative investments in India was predominantly the domain of wealth managers and their high-net-worth clients. Although relevant products existed and generated real returns, the entry barrier was high, understanding was limited, and the infrastructure to provide these opportunities to a broad base of investors was simply absent.
The situation is changing, and it is happening faster than many expected. Per Annum, one of the emerging alternative investment platforms in India, reached an Assets Under Management (AUM) of 1,500 crore rupees as of August 2026, representing a 400% growth over the last 12 months. Over its entire operational period, the platform has deployed more than 12,500 crore rupees in capital. These figures reflect not only the growth of one company but also a broader shift in the mindset of retail investors regarding where to direct their funds.
The shift towards alternative investments is driven by the convergence of several factors. Stock markets have shown moderate growth over long periods. Debt fund tax advantages were partially lost following regulatory changes in 2023. Gold experienced its rally and stabilized. Fixed deposits, despite their reliability, fail to keep pace with inflation for investors willing to take on higher risk. Consequently, a group of investors seeking returns uncorrelated with Dalal Street events is growing, and they are prepared to research what they invest in themselves.
Technology has lowered the barriers that previously made this category inaccessible. Processes such as discovery, registration, portfolio tracking, and communication, which previously required the presence of a client manager, can now be conducted through a digital platform. This expanded access attracts investors from cities and income levels that were historically unserved by the alternative investment ecosystem.
The third ingredient has been the maturation of regulation. The evolution of the regulatory framework concerning P2P lending, fractional real estate, and private credit has provided greater clarity regarding the obligations of platforms and investor protection. Investors who might have hesitated two years ago due to an unclear regulatory landscape are now more confident in asking the right questions and making informed decisions.