Indian HNIs preferring offshore investments: Validus Wealth CIO
Hyderabad: High net worth individuals (HNIs) and Ultra HNIs in India are showing a lot of interest in offshore investments. Pre-Covid, there was a little interest in geographic diversification, but post-Covid, they have realised the ‘opportunity spread’ outside India, according to a wealth management expert.
Rajesh Cheruvu, chief investment officer, Validus Wealth, told Telangana Today, “In India, opportunities are limited for HNIs and Ultra HNIs, as only public equity and debt markets are active. Investment scope has become narrow. But outside India, they can invest in both public and private markets be it in the US, Israel, Taiwan, Korea or China. These investors are showing an inclination to invest in overseas markets.”
He added, “The US remains the most attractive market for Indian HNIs and Ultra HNI investors. But we advise investors to be cautious as stock falls have been rampant and it is essential to maintain margin safety. We are advising the investors to invest in emerging markets such as Japan and Europe as the valuations are attractive in these markets.”
In terms of asset classes, the debt market has not been attractive. The investors must look for internally leveraged funds. Validus Wealth also advises investors to invest in market-neutral opportunities as such strategies will help investors by generating good returns.
He noted, “Prior to 2014, there were heavy investments into real estate by HNIs. They have invested in fifth and sixth houses during the bull run during that period. They have burnt their fingers. But in the last 18 months (post March 2020), the investors had been preferring options in public equity/liquid markets. They have not been very keen on investing in gold.”
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