Ultra-HNIs' Investment Strategies in a Bull Market
Indian markets have witnessed a strong rally in the past year, with the benchmark BSE Sensex surging 22%. Where are the ultra-HNIs investing their money? Himanshu Kohli, co-founder of Client Associates, shares his insights on the preferred investment aven
HnisUhnisInvestment StrategiesWealth ManagementPortfolio DiversificationStock MarketReal EstatePrecious MetalsPsu StocksReal Estate NewsJul 18, 2024
In an interaction with Business Today, Himanshu Kohli, co-founder of Client Associates, shared his insights on where HNIs and UHNIs are investing their money, which sectors are still looking attractive, and how to diversify a portfolio.
According to Kohli, financial assets are getting a higher wallet share of HNIs and UHNIs, with a preference for the unlisted space, specifically PE/VC funds. Many UHNIs are also unlocking value from traditional businesses and investing in new-age businesses and luxurious properties.
When asked about the prospects of real estate, Kohli believes that properties with limited supply and more demand will continue to do well, but overall, real estate will only give single-digit returns on a country-level basis.
Kohli also believes that the momentum in PSU stocks will not continue, and the focus will shift towards quality stocks with a growth-oriented approach.
In terms of sector allocation, Kohli advises clients to build a core portfolio of diversified funds and investment options, and let the fund managers decide on the sectors. However, if they wish to have a small satellite portfolio, they may systematically invest in banking and financial services-oriented funds that have recently underperformed.
For investors, Kohli recommends looking at their profile and seeing where the gaps are, working on the asset allocation model accordingly, and deciding how much of their surplus should be in growth-oriented portfolios or capital protection-oriented funds.
Kohli is optimistic about equities from a long-term perspective, but they can be volatile from a short-term perspective. He suggests a higher allocation towards fixed-income portfolios, especially debt alternatives and long-duration bonds. He is also positive on international investments, with a focus on emerging markets.
Client Associates is a leading wealth management firm that provides customized investment solutions to high net worth individuals, families, and institutions.
Information Himanshu Kohli is a veteran of the wealth management industry and co-founder of Client Associates. He has over two decades of experience in the financial services industry and has worked with leading banks and financial institutions.
Frequently Asked Questions
Where are HNIs and UHNIs investing their money?
HNIs and UHNIs are investing in financial assets, including equities, debt alternatives, and alternates, with a preference for the unlisted space, specifically PE/VC funds.
Will real estate continue to give good returns?
Properties with limited supply and more demand will continue to do well, but overall, real estate will only give single-digit returns on a country-level basis.
Will PSU stocks continue to outperform the market?
The momentum in PSU stocks will not continue, and the focus will shift towards quality stocks with a growth-oriented approach.
How can investors diversify their portfolio?
Investors should look at their profile and see where the gaps are, work on the asset allocation model accordingly, and decide how much of their surplus should be in growth-oriented portfolios or capital protection-oriented funds.
What are the expectations for the Indian equity and bond markets going forward?
We are optimistic about equities from a long-term perspective, but they can be volatile from a short-term perspective, and interest rates are expected to further come down.
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