Investors looking for equity-like returns beyond Indian listed equities may find opportunities across multi-asset strategies, global equities and commercial real estate, panellists said at the PMS AIF World session.
Speaking at the Crystal Gazing Summit organised by Wealth Services Firm, PMS AIF WORLD, Vishal Gupta, Alternative Investment Fund Manager at ICICI Prudential Asset Management; Ketul Sakhpara, Founder of Bayford Capital; and Anil Rego, Founder and CIO of Bright Horizons, shared their perspectives on alternative avenues capable of delivering equity-like outcomes.
Multi Asset Gains Prominence Amid Volatility
Rego said multi-asset strategies have regained prominence due to recent volatility and a phase of lower equity returns. The addition of precious metals such as silver and the strong performance of gold contributed to renewed interest.
He said investors can construct such exposure individually through gold, silver, equity and bonds, but multi-asset funds offer active allocation based on modelling and data-driven decision making. These funds help adjust weightages across asset classes over time.
He said multi-asset strategies can provide diversification and risk-adjusted returns, noting that gold and equity often move differently, and the inclusion of bonds can further balance outcomes.
Global Equities Offer Diversification and Sector Access
Sakhpara said investing globally provides geographical diversification and reduces portfolio risk due to low correlation between Indian and global markets.
He said global investments also introduce a currency dimension, noting that depreciation in the domestic currency historically adds to returns when investments are held in hard currency assets.
He added that global investing allows exposure to sectors not available in India, citing earlier missed opportunities in areas such as internet, mobile and biotechnology. He said the focus should be on sectors absent domestically rather than diversification for its own sake.
He said their approach focuses on innovative sectors and identifying growth phases closer to revenue generation rather than entering too early in emerging technologies.
Commercial Real Estate Linked to Services Growth
Gupta said commercial real estate aligns with India’s services-led growth and offers participation in infrastructure used by large corporates and multinational tenants.
He said completed and leased commercial properties provide rental visibility through long-term contracts, typically offering six to eight percent rental yield. These assets also benefit from inflation-linked appreciation.
Gupta said vacancy remains the primary risk, along with lower liquidity compared to financial assets. However, large corporate tenants typically remain in place for long periods due to high fit-out investments.
Allocation Perspectives
On allocation, Rego said investors could consider allocating around 15 percent of their portfolio to multi-asset strategies.
Sakhpara said a global allocation of about 35 percent may be considered depending on risk tolerance, particularly towards innovative sectors.
Gupta suggested allocating a portion of the non-liquid debt segment towards commercial real estate as an alternative exposure.
The panellists said these alternative avenues can complement traditional equity exposure over a three to five year horizon.
PMS AIF WORLD is India’s leading wealth services firm specialising in alternative investments, serving over 800 clients across ₹2,200 crore in PMS and AIF assets. The firm follows a knowledge-first philosophy with the belief that when knowledge leads, wealth follows, and it focuses on delivering well-informed investing for its alpha seeking clientele.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
