The stock exchange is booming and also the assets sector is showing signs of a giant comeback. Gold prices haven’t moved much over the last 12-18 months and therefore the dynamism within the rate of interest movement is throwing up opportunities for investors.
Wealth creation may be a long-term process and making use of the opportunities together with the proper asset allocation holds the key to generating a high inflation-adjusted return in one’s portfolio. And, the high net worth individuals (HNIs) and therefore the ultra HNIs are looked upon as that set of investor community who play their cards well.
As an example, HNIs can now invest in Sovereign Gold Bonds/Gold ETFs, they will take exposure to land through assets Investment Trusts (REITs) or land-linked debentures, InvITs are a gorgeous vehicle to speculate in infrastructure assets and Liberalized Remittance Scheme (LRS) and rupee-denominated fund of funds are a pretty thanks to diversifying the portfolio.
Have HNI and Ultra HNI remained invested in any respect levels or kept booking profits at crucial levels? Our experience is that almost all of the investors have remained invested at the least bit levels. People who required liquidity at any stage or were unsure of the valuations are booking profits.
We are seeing increasing interest in fixed income portfolios and clients are viewing alternative investments. We don’t cover this asset class and wouldn’t wish to inquire into the identical.
How attractive is that the start-up space for HNIs in India? Is that the money flowing more into tech start-ups or also into other sectors?
Investors have an interest in camera markets since plenty of the paper wealth is getting created amongst early/mid-stage companies. Investors can access such companies either through the venture debt route or through venture capital/private equity funds.
Like public markets, businesses that are privately held but have good unit economics are worth investing in, and that we do selectively suggest investors consider such opportunities.
However, in general, we feel that there are greater exuberance in-camera markets as compared to public markets, and investors must do thorough due diligence before investing in such an asset class.
How should HNIs approach asset allocation when it involves investing their money?
UHNIs and HNIs should still stick with being disciplined in their investments by adhering to their long-term asset allocation and rebalancing their portfolio periodically to make sure that they’re not over-exposed to a specific asset class