The Nifty50 posted a healthy gain of over 6% in March, but a few AIFs managed to deliver more than double that, drawing attention from high-net-worth investors seeking alpha beyond listed equities.
Data tracked by PMSBazaar.com showed that 116 AIF funds across categories have given positive returns in March 2025.
Note: Each scheme may have a different benchmark. Nifty is used as a reference.
Topping the charts, Samvitti Capital’s Alpha Fund, a Category III long-only strategy, clocked an impressive 15.22% return for March – clearly outpacing the broader market, capitalizing on the bullish momentum in equities.
Vivriti Asset Management had a remarkable month with two of its debt funds in the top four: The Emerging Corporate Bond Fund delivered a 14.54% return, leading the pack in the Category II – Debt segment. With an AUM of Rs 820 Cr, the fund benefitted from tactical plays in high-yield corporate credit.The Alpha Debt Fund – Enhanced also impressed, posting 11.79%, supported by active credit selection and duration management.The IFMR Fimpact Long Term Credit Fund, managed by Northern Arc Investment Managers, achieved a robust 12.56% return in March, reflecting the resurgence of investor appetite for structured credit and long-term fixed income opportunities.
With an AUM of Rs 197.49 Cr, the fund’s performance underscores the growing traction in the private credit space.
ETMarkets.comMarch 2025 was a rewarding month across asset classes. While equities benefitted from a strong Nifty rally, select debt-oriented AIFs demonstrated their ability to generate alpha in a rising rate environment.
Also Read: PMS Tracker FY25: 18 funds gain up to 54%, worst performers shed over 27%
Category II Debt Funds:
Category II funds in the Alternative Investment Fund (AIF) space typically invest in a mix of equity, debt, or other securities without leverage. These funds include private equity funds, debt funds, funds of funds, and other similar funds.
As the debt market gains traction amidst macroeconomic uncertainties, funds focusing on high-yield corporate credit and structured finance are likely to remain in favor.
March 2025 proved to be a rewarding month for credit-oriented Category II Alternative Investment Funds (AIFs), with several funds delivering strong short-term returns.
Vivriti Asset Management emerged as a clear leader, dominating the performance charts across multiple offerings. While most debt funds posted impressive gains, a notable lag was seen in the SME-focused segment, highlighting a divergence in performance across AIF categories.
Category III Performance:
Category III AIFs are often focused on short-term trading, arbitrage opportunities, and other sophisticated investment strategies in listed or unlisted derivatives aimed at generating high returns.
A Category III Alternative Investment Fund (AIF) debt fund invests in listed or unlisted securities, debt instruments, and other financial instruments.
Category III – Long Only AIFs delivered robust returns in March 2025, supported by a strong equity market rally.
Samvitti Capital’s Alpha Fund led the pack with a standout 15.22% return, while established players like Motilal Oswal and Alchemy Capital also posted double-digit gains.
Apart from Samvitti Capital’s standout performance, several other Category III – Long Only funds delivered robust returns in March 2025.
Nepean Capital’s Long Term Opportunities Fund II posted a solid 11.69% return, reflecting strong stock selection in the mid-cap and growth segments.
Motilal Oswal’s Founders Fund Series 1 impressed with an 11.01% gain, driven by concentrated bets on high-conviction ideas.
Alchemy Capital’s flagship Emerging Leaders of Tomorrow delivered 10.95% and Carnelian’s India Amritkaal Fund also joined the double-digit club with a 10.10% return, tapping into India’s structural growth opportunities.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
