INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Alternate investment funds (AIFs) are no longer alternatives
They are going mainstream as high net worth individuals (HNIs) hunt for higher alpha.
Investments in such avenues read close to Rs 1 lakh
crore since 2012 while mutual funds have received Rs 9 lakh crore.
Of late, tide is turning and the AIF space is growing at an unparalleled
pace.
Speaking at the second edition of ETMarkets Global Summit, leading wealth and hedge fund managers said there is enough space for
services such as hedge funds, PMS (Portfolio Management Services) and venture funds to grow along with the mutual fund industry
All that matters is alpha generation.
PMS discretionary growth has been 50 per cent on a yearly basis, said Shahzad Madan, Head of PMS and
Alternative investment space does not have to become bigger than MF space
expectation wealthy clients have from AIF managers is that if you are not growing at 20-30 per cent compounded annually, it is not
considered good, said Jaideep Hansraj, CEO for Wealth Management and Priority Banking, Kotak Mahindra Bank.
Hansraj, whose company has
experimented with wealth management products over the last 3-4 years, has seen considerable growth in this segment.
According to Andrew
Nikhil Vora, Founder and CEO at Sixth Sense Ventures, hit the nail on the head when he said the only way to make money is to invest in
But why do investors lose money It's because they hold the capital, he put it straight.
Vora has good reasons why he believes so
"He started his venture fund to invest in leaders of tomorrow
The leaders of today are not necessarily the leaders of tomorrow
If you don't get your breadth of investment right, then you need to worry," he cautioned
prelisting stage doesn't mean that a company is low in valuation
Investors seek high returns because liquidity is higher in prelisting stage, he pointed out.
Kunal Upadhyay, Managing Partner, Bharat
Innovation Fund, said early stage investment is tough as a lot of innovation is expected.
Hansraj also spoke of retail investors putting a
premium on future growth potential whatever the IPO pricing is.
