THE YEAR 2024 has been marked by a constantly shifting financial landscape.
Elections in various countries, persistent inflation, rising geopolitical tensions, and overvaluation in equity markets have prompted high net worth individuals (HNI) to broaden their horizons and diversify their portfolios.
As the market faces moderate growth prospects-with interest rate cuts largely factored in-HNIs are increasingly on the lookout for avenues that promise higher returns. Recent trends suggest a clear shift towards luxury real estate and gold, along with a growing interest in alternative investments.
According to a report by Capgemini, the share of alternative investments in HNI portfolios has risen to 15 per cent, up from 13 per cent in 2023.
Alternative investments encompass commodities, currencies, private equity, hedge funds, structured products, and digital assets. This reflects a broader strategy to mitigate risks associated with traditional equities and cash holdings, which have faced challenges in the current economic climate.
Additionally, fixed-income instruments have gained traction, now making up 20 per cent of HNI portfolios.
This shift is particularly evident among ultra-high-net-worth individuals (UHNIS), who are increasingly using bond strategies to hedge against inflation and preserve their wealth.
Real Estate
As of 2024, 19-20 per cent of HNIs' wealth is allocated to real estate, reflecting a sustained focus on physical assets.
Real estate is favoured for its tangible nature, stable income, steady returns, and intrinsic collateral value.
هذه القصة مأخوذة من طبعة November 02, 2024 من BW Businessworld.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة November 02, 2024 من BW Businessworld.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
MEMORIES & IMPRESSIONS
Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.
The Robotaxi Market
The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.
And the Nobel Prize Goes to AI
The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.
Ola Electrified
Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.
Sharp Slide in Industrial Output on Eve of Deepavali
India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.
Heralding the Solar Era with Sustainable Electrification
RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more
A WELL-GREASED MACHINE
The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh
Disruption Ahead: Beyond Organisation Charts and Structures
ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.