Alternative Investment Funds (AIFs) have gained increasing significance in India’s evolving financial landscape, providing investors with opportunities for wealth creation and portfolio diversification beyond conventional assets. Despite the growth of regulatory frameworks and the rising popularity of AIFs, investor awareness and understanding of these investment vehicles remain relatively limited. Objectives: 1. To assess the level of awareness of AIFs among Indian investors. 2. To analyze investor preferences among various categories of AIFs. 3. To evaluate the perceived benefits and risks that influence AIF investment decisions. 4. To explore the future growth potential of AIFs in India. Methodology: This study employs a mixed-method approach, integrating primary survey data collected from 100 investors across diverse demographic profiles with secondary data derived from published research and industry reports. Statistical tools utilized in the analysis include ANOVA for group comparisons, Chi-square tests to examine demographic influences, multiple regression analysis to identify key predictors of investment behavior, and Structural Equation Modeling (SEM) using AMOS to validate relationships between variables. Findings: • Investor awareness levels exhibit significant variability, with more • experienced investors demonstrating greater knowledge. • Demographic factors such as age and income influence preferences for different categories of AIFs. • Awareness, perceived benefits, preferences, and risks serve as significant predictors of investment decisions (R² = 0.679). • SEM analysis confirms robust relationships between awareness, perceived benefits, and investment intention, with intention functioning as a key mediator of future outlook.