Investment funds in India, such as Mutual Funds, AIFs, REITs, InvITs, and FPIs, play a crucial role in capital formation and providing diversified investment opportunities. SEBI is the primary regulator, ensuring transparency and investor protection, with distinct guidelines for each fund type.
SEBI regulates Mutual Funds, AIFs, and REITs/InvITs, while the RBI and FEMA govern foreign investments. AIFs cater to high-net-worth individuals and institutional investors, and REITs/InvITs allow participation in real estate and infrastructure.
Recent trends include the rise of passive funds, ESG investing, and the liberalization of foreign investment norms. Challenges include regulatory compliance, foreign investment restrictions, and tax implications, as the sector evolves to ensure financial stability and growth.
