THE DEMAND FOR big-ticket investment options, such as portfolio management services (PMS) or alternative investment funds (AIFS), has grown with the rising number of high net-worth individuals (HNIS). In conversation with Business Today, 53-year-old Vikaas M. Sachdeva, Managing Director of Sundaram Alternates, talks about where the domestic alternative investment industry is headed. Edited excerpts:
With India seeing a manifold rise in HNIs, how do you see the investment landscape for the PMS industry?
As India's per capita GDP crossed the tipping point of $2,000 in 2020, discretionary spending has seen a major shift and is expected to increase manifold. Quite like what has happened in the rest of the world, as the number of wealthy individuals grow in India, there has been a change in how they invest. Investors are more inclined towards investing in unlisted equity, alternatives, and international assets. This is completely in line with the global alternative assets industry, which is set to reach $24.5 trillion by CY2028 compared to $16 trillion in CY2023.
In the realm of alternative investments, which asset classes can gain prominence over the next three to five years?
Significant momentum has been seen over the past seven years with PMS growing at 20% CAGR, [and] category (CAT) II and CAT III AIFs seeing a CAGR of 55% and 44%, respectively. The Indian alternatives industry overall is expected to grow over 3x in the next five years.
This story is from the April 28, 2024 edition of Business Today India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 28, 2024 edition of Business Today India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
All That Glitters
The price of gold has been rising unabated. It has soared to more than 73,000 per 10 gm in 2024 from *31,000 in early 2018. Is the rally sustainable or is this a bubble?
"Hire for attitude, not ability"
Thryve Digital is a player in the healthcare technology sector delivering next-generation solutions
Road Warrior
For Khalid Wani, Senior Director of Sales at Western Digital India, life is much more than just the corner office. Biking across the world is one way he derives meaning for his life
WIDENING THE POOL
THERE HAS BEEN A JUMP IN INDIVIDUALS INVESTING DIRECTLY IN THE STOCK MARKETS, BUT MUMBAI AND AHMEDABAD STILL ACCOUNT FOR THE LION'S SHARE. THERE DEFINITELY IS SCOPE FOR IMPROVEMENT IN TERMS OF PENETRATION LEVELS ACROSS THE COUNTRY
CRISIS IN THE CLOUDS
INDIAN AVIATION IS IN CRISIS. AIRLINES ARE GRAPPLING WITH FLIGHT CANCELLATIONS, CREW SHORTAGES, AND COMPLAINTS ABOUT POOR SERVICE, ARE BLEEDING DUE TO RISING COSTS WILL THE FASTEST-GROWING AVIATION MARKET RECOVER?
"India should start privatising public sector banks"
Arvind Panagariya, Chairman of the 16th Finance Commission, on growth, inequality, jobs, the banking sector, and more
THE DARK SIDE OF GOLD LOANS
THERE HAS BEEN A SHARP RISE IN GOLD LOANS IN RECENT YEARS. BUT THERE IS A SEEDIER SIDE TO THIS, AS IS EVIDENT FROM THE RED FLAG THE RBI RAISED RECENTLY. WILL THE REGULATOR'S MOVE PROTECT CUSTOMERS?
"I LET MY WORK DO THE TALKING"
Megha Engineering & Infrastructures MD P.V. Krishna Reddy on being low profile, the infra opportunity and much more
"Core of insurance lies in long-term security"
Vibha Padalkar, MD & CEO of HDFC Life, on the insurance provider's performance, surrender charges, and future innovations
Distress in the Books
Bandhan Bank, the brainchild of Chandra Shekhar Ghosh, has made the journey from an MFI to a bank, but with many hurdles. Now with his resignation as MD & CEO, is the lender staring at more uncertainty?
