India’s alternative assets market will grow five-fold to $2 trillion by 2034, said a report on Tuesday, referring to investment options outside of traditional investments such as stocks, bonds and cash.
The market has $400 billion in assets under management (AUM) and its surge will be driven by investor sophistication, portfolio diversification and favourable regulations, according to Avendus Captial’s study called ‘India Goes Alternatives’.
The study said there is “significant growth potential” for alternative assets because of the rising number of high-net-worth individuals (HNIs). It highlighted that alternative investments in India are outperforming traditional investment options and attracting increased interest from HNI and ultra HNI segments. This trend aligns with global patterns, where alternatives have seen their share double from 10 per cent to 20 per cent of total global AUM between 2005 and 2020.
“The emergence of alternative investments in India marks a fundamental shift in our investment landscape. We’re seeing a fundamental restructuring in how capital is deployed,” said Anshul Agarwal, managing director and co-head, consumer, FIG & business services investment banking at Avendus Capital.
“Driving this shift is the synergy between regulatory enhancements, technological advancements and a growing base of sophisticated investors. As the market evolves, we observe a convergence of global trends and local market dynamics. This uniquely positions India not only for significant expansion in the alternatives market but also as a potential leader in innovation among emerging economies.” Read more
Source: Business Standard