Young Gen Investment Trail

The young and wealthy are diversifying their investment portfolios across a spectrum of sectors, and are looking beyond traditional products, and national boundaries

- TEENA JAIN KAUSHAL

IN THE EVER-EVOLVING landscape of wealth management, young billionaires are forging their own, distinct path to growing their riches. They are seeking out investment opportunities in alternative avenues that encompass a range of options including real estate, start-ups and passion projects.

Not for them those conventional options of equities and fixed deposits. These individuals are diversifying their investment portfolios across a spectrum of sectors and are exploring opportunities that go beyond traditional products and even national boundaries.

Alok Saigal, President and Head of wealth management firm Nuvama Private, is seeing this change firsthand. He says young ultrahigh-net-worth individuals (UHNIs)—those whose wealth is valued at over $30 million—have a very different approach to investing compared with their forebears. “They are seeking investment opportunities beyond conventional wealth management products like mutual funds, PMS (portfolio management services), bonds, and stocks. They are also keen on opportunities beyond domestic frontiers and manage currency and geographic risk efficiently—since they consider themselves global citizens,” he says.

START-UPS

One bandwagon appears to be investments in the start-up space. Young start-up founders who have turned billionaires are giving back to the ecosystem that brought them these riches, increasingly deploying their capital and expertise in other start-ups. Entrepreneurs discern the value of diversifying their portfolios. They often seek opportunities that resonate with their industry knowledge, enabling them to harness their insights and networks.