What’s driving Bharat to invest in alternative assets? Anshu Kapoor answers

economictimes.indiatimes.com:

Anshu Kapoor, President & Head, Nuvama Asset Management, says there are two drivers. The number one driver itself is the humongous pool of savings now available to the markets today. So, Indians save about $750 billion a year, that is Rs 60 lakh crore every year. A part of that savings obviously gets channelized into equity markets and other risky assets as we call them. But as wealth increases, demand for alternative avenues also increases and customers are asking why cannot we also access the next best unlisted companies of India? Why can’t we access commercial real estate or infrastructure assets? Emerging or evolving awareness about these products and asset classes is a big driver.”


We have been seeing good flows in PMS and mutual funds from tier II, tier III cities and towns. But now we are seeing equally high interest in alternatives as well. What is driving this much more renewed awareness of investors from tier II, tier III cities and towns vis-a-vis financial assets?
It is an interesting development that all of us are taking note of and I must say that the whole asset management industry is in a structural bull run.

The industry 10 years back was only Rs 7 lakh crore. Today, the industry is R 46 lakh crore. That is more than a 6x jump in about 10 years.

Of which, there is a segment called alternatives. Products that were earlier not available to our investors in India, could take the form of private equity, real estate, REITs, InvITs, private credit and so on. Those products are seeing a lot of demand.

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