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.
This story is from the November 02, 2024 edition of BW Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 02, 2024 edition of BW Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Reflections on Consciousness and Creation
Indian-American DEEPAK CHOPRA on the nature of the universe, the digital fabric of existence, and the power of a conscious mind
MORE TAKE TO DRIVING IN STYLE
High-end luxury vehicles are no longer part of a niche market, but a rapidly expanding segment of automobile sales, driven by changing consumer preferences, rising disposable incomes and better infrastructure
India's Growing Affinity for Swiss Watches: A Luxury on the Rise
NDIA'S ROBUST ECONOMIC growth, projected to exceed 6 per cent in 2024 and 2025, is fostering a rising demand for aspirational products. As disposable incomes increase, particularly among the expanding middle class, luxury goods such as Swiss-made watches are gaining popularity.
An ENRiching Outlook
KPMG's latest report shows energy CEOs being optimistic about the sector's outlook. ANISH DE, Global Head, ENRC, KPMG speaks to BW Businessworld's Arjun Yadav on what's driving this confidence
Paving the Path to a Sustainable Future
Salesforce's ESG journey has made an impact beyond the company. SUNYA NORMAN, SVP of ESG Strategy and Engagement at Salesforce, shares more on how the tech giant integrates sustainability into its core operations, supporting global goals while empowering employees
LEADERSHIP TRANSITION AT XIAOMI INDIA
Xiaomi India is experiencing a leadership evolution, beginning with Muralikrishnan B's departure as President by the end of 2024. This change underscores Xiaomi's shift towards nurturing local talent amidst dynamic global shifts. The story tracks key transitions from Manu Kumar Jain's leadership to Muralikrishnan B's impactful tenure, along with recent strategic hires, highlighting Xiaomi's alignment towards market adaptability and consumer focus
WEAVING SUSTAINABILITY
Once a modest home textile manufacturer, Jindal Worldwide has evolved into a vertically integrated textile powerhouse, spanning critical segments of the yarn and fabric value chain
FORCE FOR GOOD
FY24 saw capacity expansions for Century Enka in nylon and polyester segments, along with investments in modernisation, renewable energy, and safety initiatives
REIMAGINING TOMORROW
For V-Guard, tomorrow signifies progress, driven by today's actions, setting the foundation for future growth and value creation for all stakeholders
STRONG LEGACY
Powered by a strong legacy, Gulf Oil continues to be a story of exciting transformation and outperformance for more than a decade