Key Takeaways
- • Partha Sengupta, Joint Managing Director and CEO of Systematix Private Wealth, said wealthy Indian investors are holding liquidity and plan to deploy it gradually across public and private markets over the next 12 to 24 months rather than waiting for a sharp equity correction.
- • The Nifty closed at 23,053 on October 30, roughly 13 per cent below its September 2024 high of 26,277, per the ANI report.
- • Commitments to Alternative Investment Funds (AIFs) in India stood at Rs 17.53 lakh crore, against Rs 7.59 lakh crore raised, indicating room for further capital deployment.
- • Real estate AIF portfolios reached about Rs 1.2 lakh crore, doubling over a year, with the AIF share of real estate deployment rising from 13 per cent to 19 per cent in FY26.
- • Growing interest among ultra-high-net-worth individuals and family offices in private markets and private credit is driving demand for new wealth manager investment solutions.
Summary
Wealthy Indian investors are holding substantial liquidity and intend to deploy it in phases across public and private markets over the next 12 to 24 months, according to Partha Sengupta, Joint Managing Director and CEO of Systematix Private Wealth. Speaking to ANI, Sengupta said investors are not necessarily waiting for a sharp correction in equities, and are instead pursuing a phased entry strategy across different market segments. His remarks come as the Indian equity market trades below its previous peak, with the Nifty closing at 23,053 on October 30, nearly 13 per cent below its September 2024 high of 26,277.
Sengupta said wealthy investors are increasingly looking beyond domestic equities, with overseas allocations including the US, China, South Korea and Taiwan. These exposures are accessed through direct stock purchases, exchange-traded funds and alternative investment funds, including through the Liberalised Remittance Scheme and the VCC model. He stressed that offshore allocation is not necessarily a hedge against India but part of a broader strategy based on the prospects of different countries and sectors.
On alternatives, Sengupta pointed to growing interest from ultra-high-net-worth individuals and family offices in private markets and private credit, and said wealth managers will need to develop more investment solutions as clients explore unlisted assets. He cited AIF commitments of Rs 17.53 lakh crore against Rs 7.59 lakh crore raised. Real estate remains a core holding, with investors increasingly accessing it through AIFs rather than direct property ownership; real estate AIF portfolios stand at around Rs 1.2 lakh crore, having doubled over a year. He also cited an 8.7 per cent rise in prime Mumbai residential property prices over the last year. Gold is following a similar shift toward ETFs, though it continues to serve as a hedge in uncertain conditions.
Sengupta also highlighted a change in the sources of wealth creation, with business founders in healthcare, automobiles, energy and financial services emerging as a major source of new wealth. Citing Knight Frank and Hurun data, he said the number of people with wealth of USD 30 million or more rose 63 per cent over five years.
Sengupta said wealthy investors are increasingly looking beyond domestic equities, with overseas allocations including the US, China, South Korea and Taiwan. These exposures are accessed through direct stock purchases, exchange-traded funds and alternative investment funds, including through the Liberalised Remittance Scheme and the VCC model. He stressed that offshore allocation is not necessarily a hedge against India but part of a broader strategy based on the prospects of different countries and sectors.
On alternatives, Sengupta pointed to growing interest from ultra-high-net-worth individuals and family offices in private markets and private credit, and said wealth managers will need to develop more investment solutions as clients explore unlisted assets. He cited AIF commitments of Rs 17.53 lakh crore against Rs 7.59 lakh crore raised. Real estate remains a core holding, with investors increasingly accessing it through AIFs rather than direct property ownership; real estate AIF portfolios stand at around Rs 1.2 lakh crore, having doubled over a year. He also cited an 8.7 per cent rise in prime Mumbai residential property prices over the last year. Gold is following a similar shift toward ETFs, though it continues to serve as a hedge in uncertain conditions.
Sengupta also highlighted a change in the sources of wealth creation, with business founders in healthcare, automobiles, energy and financial services emerging as a major source of new wealth. Citing Knight Frank and Hurun data, he said the number of people with wealth of USD 30 million or more rose 63 per cent over five years.
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