New Delhi, March 10 -- Funds that follow alternative strategies in the listed markets have exploded in popularity since the introduction of Alternative Investment Fund regulations. Category III AIFs - a brand new idea in 2012 - have garnered Rs.2.17 lakh crore of commitments as of today.

Discretionary portfolio managers have grown by Rs.4.26 lakh crore since then. And even mutual fund investors have discovered the power of risk-adjusted returns through categories such as balanced advantage funds ( Rs.2.9 lakh crore of assets under management) and multi-asset funds ( Rs.4.33 lakh crore of AUM).

The Securities and Exchange Board of India recently notified a new asset class: the Specialised Investment Fund (SIF), which, with a minimum inve...