Alternative investment emerging as the preferred investment

0
1145

The alternative investment segment in India will gain increasing traction with family offices.

They are investing largely in alternative unlisted assets to gain better investment control also diversify their portfolio, earn attractive risk-adjusted returns with limited correlation to public markets, and hedge against inflation.

In the private wealth managers are largely collaborating with family offices to structure private investments. India is becoming one of the fastest-growing economies in the world and has the world’s third-largest startup ecosystem.

Rapid rise across industries and fast-paced digitization and a high-performing market and low-interest rates also India has become a sought-after destination for global investors seeking attractive returns on their investments.

 It has also given rise to a new class of the first generation Ultra High Net worth Individuals who are leveraging the family office way to hold and increase their wealth.

A report brought out by technology platform for startups trica in partnership with law firm AZB Partners and consulting firm EY stated that over 40 percent of family offices.

 And Ultra High Net-worth Individuals have doubled their allocation to private markets in the past five years. The Investments in the private market space remained a preferred investment choice with the start-up allocations, VC funds topping the table.

 Investments were also allocated across other alternatives like real estate and infrastructure.

Growing with investor awareness and Ultra High Net worth Individuals seeking flexibility and transparency across varied product offerings and well-managed as offering high liquidity and low volatility are emerging as preferred investment choices for family offices.

 Founder & MD, Singh Advisors, explained with exponential growth witnessed across diverse industrial sectors, fast-paced digitization, a high-performing market, and low-interest rates.

 Also, India has cemented a strong position as a sought-after destination for global investors seeking attractive returns on their investments.

 The India growth story has spurred a new class of first-generation units to leverage the family office way to manage and increase their wealth.

The Family offices are exploring the investment potential of alternative unlisted assets to gain better investment control also earn attractive risk-adjusted returns with limited correlation to public markets and hedge against inflation.

 That, Equity markets have witnessed a knee-jerk reaction, clouded with uncertainty, with bond yields inching upwards.

Follow and connect with us on Facebook, LinkedIn & Twitter