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18700 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
Whether is recording your spending on an Excel spreadsheet, using an app or writing it down on a notebook, keeping a budget is most effective when you do it in a format that works for you.
If you are looking for a budget template, Microsoft Office offers a holiday spending-focused version.
COMMUNICATE WITH YOUR LOVED ONES
If you’re experiencing a lot of financial pressure this holiday season, Alev recommends that you try to communicate your feelings to your loved ones.
“One of the hardest things is resentment can build up if you feel like you need to buy gifts for your family and you can barely make your student loan payments, so bring things up,” Alev said.
Sharing your financial struggles can be hard. If you want to talk but don’t want to share every detail of your financial struggles, that’s okay. Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family. |
18701 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
If you are looking for a budget template, Microsoft Office offers a holiday spending-focused version.
COMMUNICATE WITH YOUR LOVED ONES
If you’re experiencing a lot of financial pressure this holiday season, Alev recommends that you try to communicate your feelings to your loved ones.
“One of the hardest things is resentment can build up if you feel like you need to buy gifts for your family and you can barely make your student loan payments, so bring things up,” Alev said.
Sharing your financial struggles can be hard. If you want to talk but don’t want to share every detail of your financial struggles, that’s okay. Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. |
18702 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
If you are looking for a budget template, Microsoft Office offers a holiday spending-focused version.
COMMUNICATE WITH YOUR LOVED ONES
If you’re experiencing a lot of financial pressure this holiday season, Alev recommends that you try to communicate your feelings to your loved ones.
“One of the hardest things is resentment can build up if you feel like you need to buy gifts for your family and you can barely make your student loan payments, so bring things up,” Alev said.
Sharing your financial struggles can be hard. If you want to talk but don’t want to share every detail of your financial struggles, that’s okay. Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. |
18703 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
COMMUNICATE WITH YOUR LOVED ONES
If you’re experiencing a lot of financial pressure this holiday season, Alev recommends that you try to communicate your feelings to your loved ones.
“One of the hardest things is resentment can build up if you feel like you need to buy gifts for your family and you can barely make your student loan payments, so bring things up,” Alev said.
Sharing your financial struggles can be hard. If you want to talk but don’t want to share every detail of your financial struggles, that’s okay. Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. In many cases, your family would rather spend quality time with you. |
18704 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
“One of the hardest things is resentment can build up if you feel like you need to buy gifts for your family and you can barely make your student loan payments, so bring things up,” Alev said.
Sharing your financial struggles can be hard. If you want to talk but don’t want to share every detail of your financial struggles, that’s okay. Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. In many cases, your family would rather spend quality time with you.
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. |
18705 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
“One of the hardest things is resentment can build up if you feel like you need to buy gifts for your family and you can barely make your student loan payments, so bring things up,” Alev said.
Sharing your financial struggles can be hard. If you want to talk but don’t want to share every detail of your financial struggles, that’s okay. Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. In many cases, your family would rather spend quality time with you.
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family. |
18706 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
Sharing your financial struggles can be hard. If you want to talk but don’t want to share every detail of your financial struggles, that’s okay. Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. In many cases, your family would rather spend quality time with you.
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family.
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt. |
18707 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
Ultimately, what you want is for your loved ones to understand how you’re feeling.
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. In many cases, your family would rather spend quality time with you.
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family.
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt.
If using your credit card is your only option, it’s important that you use it wisely. |
18708 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
Plauché just recently started sharing her money worries with her family.
“I have been open with my family, just that I’m not going to be able to give gifts that year,” she said.
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. In many cases, your family would rather spend quality time with you.
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family.
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt.
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards. |
18709 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
EXPERIENCES VS. GIFTS
Another great way to save money is to skip material gifts and instead, grant your time. In many cases, your family would rather spend quality time with you.
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family.
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt.
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards.
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest. |
18710 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
In many cases, your family would rather spend quality time with you.
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family.
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt.
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards.
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest.
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said. |
18711 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
Alev recommended planning low-cost activities such as a hike with your family, or attending a free event in your city. Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family.
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt.
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards.
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest.
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said.
“It’s easy to get caught up. |
18712 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
Other options can be a holiday movie marathon with your friends, a free museum with your parents or a volunteering day with your family.
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt.
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards.
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest.
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said.
“It’s easy to get caught up. It’s easy to use it a lot and have several different payments that will come down the road,” she said. |
18713 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
USE CREDIT RESPONSIBLY
Since Plauché is already paying her student loan debt every month, she is avoiding using her credit card this holiday season to avoid carrying more debt.
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards.
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest.
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said.
“It’s easy to get caught up. It’s easy to use it a lot and have several different payments that will come down the road,” she said.
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. |
18714 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards.
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest.
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said.
“It’s easy to get caught up. It’s easy to use it a lot and have several different payments that will come down the road,” she said.
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. In her quest to find gifts that don’t cause her financial stress, Johnson has been getting creative. |
18715 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
If using your credit card is your only option, it’s important that you use it wisely.
If you struggle with overspending during the holidays, Alev also recommends setting a budget for each of your credit cards.
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest.
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said.
“It’s easy to get caught up. It’s easy to use it a lot and have several different payments that will come down the road,” she said.
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. In her quest to find gifts that don’t cause her financial stress, Johnson has been getting creative.
“I’ve definitely been trying to save or just make gifts because I don’t really have the disposable income to buy other people gifts or even buy myself a Christmas gift,” Johnson said. |
18716 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
If you can’t pay your balance in full every month, it’s important that you understand when you payment is due and have a plan to avoid paying a lot of interest.
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said.
“It’s easy to get caught up. It’s easy to use it a lot and have several different payments that will come down the road,” she said.
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. In her quest to find gifts that don’t cause her financial stress, Johnson has been getting creative.
“I’ve definitely been trying to save or just make gifts because I don’t really have the disposable income to buy other people gifts or even buy myself a Christmas gift,” Johnson said.
She’s been looking into gifting a used book to her dad and because she loves painting and already has all the tools, she’s working on a painting for her mom. |
18717 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
If you’re planning to use “ buy now, pay later services ”, it’s best to be very intentional, Alev said.
“It’s easy to get caught up. It’s easy to use it a lot and have several different payments that will come down the road,” she said.
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. In her quest to find gifts that don’t cause her financial stress, Johnson has been getting creative.
“I’ve definitely been trying to save or just make gifts because I don’t really have the disposable income to buy other people gifts or even buy myself a Christmas gift,” Johnson said.
She’s been looking into gifting a used book to her dad and because she loves painting and already has all the tools, she’s working on a painting for her mom.
Other affordable alternatives can be sending hand written notes to your loved ones, buying from thrift stores, hosting a cookie bake off or simply spending quality time with your family. |
18718 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
“It’s easy to get caught up. It’s easy to use it a lot and have several different payments that will come down the road,” she said.
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. In her quest to find gifts that don’t cause her financial stress, Johnson has been getting creative.
“I’ve definitely been trying to save or just make gifts because I don’t really have the disposable income to buy other people gifts or even buy myself a Christmas gift,” Johnson said.
She’s been looking into gifting a used book to her dad and because she loves painting and already has all the tools, she’s working on a painting for her mom.
Other affordable alternatives can be sending hand written notes to your loved ones, buying from thrift stores, hosting a cookie bake off or simply spending quality time with your family.
___
The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. |
18719 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. In her quest to find gifts that don’t cause her financial stress, Johnson has been getting creative.
“I’ve definitely been trying to save or just make gifts because I don’t really have the disposable income to buy other people gifts or even buy myself a Christmas gift,” Johnson said.
She’s been looking into gifting a used book to her dad and because she loves painting and already has all the tools, she’s working on a painting for her mom.
Other affordable alternatives can be sending hand written notes to your loved ones, buying from thrift stores, hosting a cookie bake off or simply spending quality time with your family.
___
The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. |
18720 | 26-year-old with $145,000 in student debt can't afford Christmas. She's giving 'affordable gifts or combining gifts with my older sister'
AFFORDABLE ALTERNATIVES
There is more than one way to find the “perfect” gift for your family and it doesn’t always involve spending a lot. In her quest to find gifts that don’t cause her financial stress, Johnson has been getting creative.
“I’ve definitely been trying to save or just make gifts because I don’t really have the disposable income to buy other people gifts or even buy myself a Christmas gift,” Johnson said.
She’s been looking into gifting a used book to her dad and because she loves painting and already has all the tools, she’s working on a painting for her mom.
Other affordable alternatives can be sending hand written notes to your loved ones, buying from thrift stores, hosting a cookie bake off or simply spending quality time with your family.
___
The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism. |
18721 | Investment options for high networth investors
India’s remarkable economic growth has resulted in a notable increase in the country’s high-net-worth investors (HNIs). According to recent wealth reports, the population of high-net-worth individuals (HNIs) with assets worth $1 million or more, which was 7.9 lakh in 2022, will rise to 16.5 lakh, a 107 per cent increase in five years.
The growing number of HNIs, as well as their desire to diversify their portfolios and access opportunities outside of traditional avenues such as stocks, mutual funds, and fixed deposits, has prompted the innovation of existing investment products, leading to the emergence of a new asset class known as ‘Alternatives.’
Although the same principles of financial and investment planning apply to all investors, HNIs have an advantage. They can choose from a broader range of conventional and unconventional investment opportunities. Investing in unconventional avenues, such as Alternatives, can improve portfolio performance, generate alpha, and allow investors to grow their wealth faster. |
18722 | Investment options for high networth investors
According to recent wealth reports, the population of high-net-worth individuals (HNIs) with assets worth $1 million or more, which was 7.9 lakh in 2022, will rise to 16.5 lakh, a 107 per cent increase in five years.
The growing number of HNIs, as well as their desire to diversify their portfolios and access opportunities outside of traditional avenues such as stocks, mutual funds, and fixed deposits, has prompted the innovation of existing investment products, leading to the emergence of a new asset class known as ‘Alternatives.’
Although the same principles of financial and investment planning apply to all investors, HNIs have an advantage. They can choose from a broader range of conventional and unconventional investment opportunities. Investing in unconventional avenues, such as Alternatives, can improve portfolio performance, generate alpha, and allow investors to grow their wealth faster.
Let us look at a few examples of such investment opportunities:
1. |
18723 | Investment options for high networth investors
According to recent wealth reports, the population of high-net-worth individuals (HNIs) with assets worth $1 million or more, which was 7.9 lakh in 2022, will rise to 16.5 lakh, a 107 per cent increase in five years.
The growing number of HNIs, as well as their desire to diversify their portfolios and access opportunities outside of traditional avenues such as stocks, mutual funds, and fixed deposits, has prompted the innovation of existing investment products, leading to the emergence of a new asset class known as ‘Alternatives.’
Although the same principles of financial and investment planning apply to all investors, HNIs have an advantage. They can choose from a broader range of conventional and unconventional investment opportunities. Investing in unconventional avenues, such as Alternatives, can improve portfolio performance, generate alpha, and allow investors to grow their wealth faster.
Let us look at a few examples of such investment opportunities:
1. Alternative Investment Funds (AIFs)
These funds were launched in 2012 after the market regulator SEBI issued guidelines for their management. |
18724 | Investment options for high networth investors
The growing number of HNIs, as well as their desire to diversify their portfolios and access opportunities outside of traditional avenues such as stocks, mutual funds, and fixed deposits, has prompted the innovation of existing investment products, leading to the emergence of a new asset class known as ‘Alternatives.’
Although the same principles of financial and investment planning apply to all investors, HNIs have an advantage. They can choose from a broader range of conventional and unconventional investment opportunities. Investing in unconventional avenues, such as Alternatives, can improve portfolio performance, generate alpha, and allow investors to grow their wealth faster.
Let us look at a few examples of such investment opportunities:
1. Alternative Investment Funds (AIFs)
These funds were launched in 2012 after the market regulator SEBI issued guidelines for their management. The guidelines enable AIFs to identify and make investment opportunities available to investors in the public and private markets. |
18725 | Investment options for high networth investors
The growing number of HNIs, as well as their desire to diversify their portfolios and access opportunities outside of traditional avenues such as stocks, mutual funds, and fixed deposits, has prompted the innovation of existing investment products, leading to the emergence of a new asset class known as ‘Alternatives.’
Although the same principles of financial and investment planning apply to all investors, HNIs have an advantage. They can choose from a broader range of conventional and unconventional investment opportunities. Investing in unconventional avenues, such as Alternatives, can improve portfolio performance, generate alpha, and allow investors to grow their wealth faster.
Let us look at a few examples of such investment opportunities:
1. Alternative Investment Funds (AIFs)
These funds were launched in 2012 after the market regulator SEBI issued guidelines for their management. The guidelines enable AIFs to identify and make investment opportunities available to investors in the public and private markets. AIFs, for example, can invest in listed and unlisted equities via private equity, infrastructure assets, venture debt, stressed assets, start-ups, and so on. |
18726 | Investment options for high networth investors
They can choose from a broader range of conventional and unconventional investment opportunities. Investing in unconventional avenues, such as Alternatives, can improve portfolio performance, generate alpha, and allow investors to grow their wealth faster.
Let us look at a few examples of such investment opportunities:
1. Alternative Investment Funds (AIFs)
These funds were launched in 2012 after the market regulator SEBI issued guidelines for their management. The guidelines enable AIFs to identify and make investment opportunities available to investors in the public and private markets. AIFs, for example, can invest in listed and unlisted equities via private equity, infrastructure assets, venture debt, stressed assets, start-ups, and so on.
As a result, the term “alternatives” came about. The guidelines have divided these funds into three categories to make it easier for investors to understand the fund’s investment objective. These categories are I, II, and III. |
18727 | Investment options for high networth investors
They can choose from a broader range of conventional and unconventional investment opportunities. Investing in unconventional avenues, such as Alternatives, can improve portfolio performance, generate alpha, and allow investors to grow their wealth faster.
Let us look at a few examples of such investment opportunities:
1. Alternative Investment Funds (AIFs)
These funds were launched in 2012 after the market regulator SEBI issued guidelines for their management. The guidelines enable AIFs to identify and make investment opportunities available to investors in the public and private markets. AIFs, for example, can invest in listed and unlisted equities via private equity, infrastructure assets, venture debt, stressed assets, start-ups, and so on.
As a result, the term “alternatives” came about. The guidelines have divided these funds into three categories to make it easier for investors to understand the fund’s investment objective. These categories are I, II, and III.
A noteworthy feature of AIFs is that their returns are generally uncorrelated with publicly traded equity or debt markets, providing a natural hedge against volatility and genuine portfolio diversification. |
18728 | Investment options for high networth investors
Let us look at a few examples of such investment opportunities:
1. Alternative Investment Funds (AIFs)
These funds were launched in 2012 after the market regulator SEBI issued guidelines for their management. The guidelines enable AIFs to identify and make investment opportunities available to investors in the public and private markets. AIFs, for example, can invest in listed and unlisted equities via private equity, infrastructure assets, venture debt, stressed assets, start-ups, and so on.
As a result, the term “alternatives” came about. The guidelines have divided these funds into three categories to make it easier for investors to understand the fund’s investment objective. These categories are I, II, and III.
A noteworthy feature of AIFs is that their returns are generally uncorrelated with publicly traded equity or debt markets, providing a natural hedge against volatility and genuine portfolio diversification.
Because of the minimum investment threshold of ₹1 crore, AIFs are only available to HNIs. |
18729 | Investment options for high networth investors
Alternative Investment Funds (AIFs)
These funds were launched in 2012 after the market regulator SEBI issued guidelines for their management. The guidelines enable AIFs to identify and make investment opportunities available to investors in the public and private markets. AIFs, for example, can invest in listed and unlisted equities via private equity, infrastructure assets, venture debt, stressed assets, start-ups, and so on.
As a result, the term “alternatives” came about. The guidelines have divided these funds into three categories to make it easier for investors to understand the fund’s investment objective. These categories are I, II, and III.
A noteworthy feature of AIFs is that their returns are generally uncorrelated with publicly traded equity or debt markets, providing a natural hedge against volatility and genuine portfolio diversification.
Because of the minimum investment threshold of ₹1 crore, AIFs are only available to HNIs. However, not all funds are required to collect ₹1 crore in a single transaction. |
18730 | Investment options for high networth investors
The guidelines enable AIFs to identify and make investment opportunities available to investors in the public and private markets. AIFs, for example, can invest in listed and unlisted equities via private equity, infrastructure assets, venture debt, stressed assets, start-ups, and so on.
As a result, the term “alternatives” came about. The guidelines have divided these funds into three categories to make it easier for investors to understand the fund’s investment objective. These categories are I, II, and III.
A noteworthy feature of AIFs is that their returns are generally uncorrelated with publicly traded equity or debt markets, providing a natural hedge against volatility and genuine portfolio diversification.
Because of the minimum investment threshold of ₹1 crore, AIFs are only available to HNIs. However, not all funds are required to collect ₹1 crore in a single transaction. They can collect the money in tranches (called drawdowns) over 2-3 years. The drawdown mechanism makes these funds easy on the wallet. |
18731 | Investment options for high networth investors
AIFs, for example, can invest in listed and unlisted equities via private equity, infrastructure assets, venture debt, stressed assets, start-ups, and so on.
As a result, the term “alternatives” came about. The guidelines have divided these funds into three categories to make it easier for investors to understand the fund’s investment objective. These categories are I, II, and III.
A noteworthy feature of AIFs is that their returns are generally uncorrelated with publicly traded equity or debt markets, providing a natural hedge against volatility and genuine portfolio diversification.
Because of the minimum investment threshold of ₹1 crore, AIFs are only available to HNIs. However, not all funds are required to collect ₹1 crore in a single transaction. They can collect the money in tranches (called drawdowns) over 2-3 years. The drawdown mechanism makes these funds easy on the wallet. AIFs have amassed an AUM of ₹8.30-lakh crore in the 11 years since their inception, demonstrating the shift of HNI money to this asset. |
18732 | Investment options for high networth investors
As a result, the term “alternatives” came about. The guidelines have divided these funds into three categories to make it easier for investors to understand the fund’s investment objective. These categories are I, II, and III.
A noteworthy feature of AIFs is that their returns are generally uncorrelated with publicly traded equity or debt markets, providing a natural hedge against volatility and genuine portfolio diversification.
Because of the minimum investment threshold of ₹1 crore, AIFs are only available to HNIs. However, not all funds are required to collect ₹1 crore in a single transaction. They can collect the money in tranches (called drawdowns) over 2-3 years. The drawdown mechanism makes these funds easy on the wallet. AIFs have amassed an AUM of ₹8.30-lakh crore in the 11 years since their inception, demonstrating the shift of HNI money to this asset.
The following are some of the investment opportunities available only to HNIs and presented by AIFs:
a) Start-up funds: Angel investors looking to invest in ideas that have the potential to grow into full-scale businesses can do so through start-up funds, which provide a unique platform for bringing promoters and investors together. |
18733 | Investment options for high networth investors
Because of the minimum investment threshold of ₹1 crore, AIFs are only available to HNIs. However, not all funds are required to collect ₹1 crore in a single transaction. They can collect the money in tranches (called drawdowns) over 2-3 years. The drawdown mechanism makes these funds easy on the wallet. AIFs have amassed an AUM of ₹8.30-lakh crore in the 11 years since their inception, demonstrating the shift of HNI money to this asset.
The following are some of the investment opportunities available only to HNIs and presented by AIFs:
a) Start-up funds: Angel investors looking to invest in ideas that have the potential to grow into full-scale businesses can do so through start-up funds, which provide a unique platform for bringing promoters and investors together. These funds handpick start-ups after extensive due diligence and build a portfolio with the potential to multiply capital several times. |
18734 | Investment options for high networth investors
Because of the minimum investment threshold of ₹1 crore, AIFs are only available to HNIs. However, not all funds are required to collect ₹1 crore in a single transaction. They can collect the money in tranches (called drawdowns) over 2-3 years. The drawdown mechanism makes these funds easy on the wallet. AIFs have amassed an AUM of ₹8.30-lakh crore in the 11 years since their inception, demonstrating the shift of HNI money to this asset.
The following are some of the investment opportunities available only to HNIs and presented by AIFs:
a) Start-up funds: Angel investors looking to invest in ideas that have the potential to grow into full-scale businesses can do so through start-up funds, which provide a unique platform for bringing promoters and investors together. These funds handpick start-ups after extensive due diligence and build a portfolio with the potential to multiply capital several times.
b) Mid-stage private equity (PE) funds: Investors who are hesitant to take the risk of investing in start-ups can invest in companies in the middle of their evolution cycle. |
18735 | Investment options for high networth investors
They can collect the money in tranches (called drawdowns) over 2-3 years. The drawdown mechanism makes these funds easy on the wallet. AIFs have amassed an AUM of ₹8.30-lakh crore in the 11 years since their inception, demonstrating the shift of HNI money to this asset.
The following are some of the investment opportunities available only to HNIs and presented by AIFs:
a) Start-up funds: Angel investors looking to invest in ideas that have the potential to grow into full-scale businesses can do so through start-up funds, which provide a unique platform for bringing promoters and investors together. These funds handpick start-ups after extensive due diligence and build a portfolio with the potential to multiply capital several times.
b) Mid-stage private equity (PE) funds: Investors who are hesitant to take the risk of investing in start-ups can invest in companies in the middle of their evolution cycle. Their business valuations grow exponentially as they mature and enter the late-stage or pre-IPO stage. |
18736 | Investment options for high networth investors
The drawdown mechanism makes these funds easy on the wallet. AIFs have amassed an AUM of ₹8.30-lakh crore in the 11 years since their inception, demonstrating the shift of HNI money to this asset.
The following are some of the investment opportunities available only to HNIs and presented by AIFs:
a) Start-up funds: Angel investors looking to invest in ideas that have the potential to grow into full-scale businesses can do so through start-up funds, which provide a unique platform for bringing promoters and investors together. These funds handpick start-ups after extensive due diligence and build a portfolio with the potential to multiply capital several times.
b) Mid-stage private equity (PE) funds: Investors who are hesitant to take the risk of investing in start-ups can invest in companies in the middle of their evolution cycle. Their business valuations grow exponentially as they mature and enter the late-stage or pre-IPO stage. The mid-stage PE fund allows investors to participate in the growth of such companies. |
18737 | Investment options for high networth investors
AIFs have amassed an AUM of ₹8.30-lakh crore in the 11 years since their inception, demonstrating the shift of HNI money to this asset.
The following are some of the investment opportunities available only to HNIs and presented by AIFs:
a) Start-up funds: Angel investors looking to invest in ideas that have the potential to grow into full-scale businesses can do so through start-up funds, which provide a unique platform for bringing promoters and investors together. These funds handpick start-ups after extensive due diligence and build a portfolio with the potential to multiply capital several times.
b) Mid-stage private equity (PE) funds: Investors who are hesitant to take the risk of investing in start-ups can invest in companies in the middle of their evolution cycle. Their business valuations grow exponentially as they mature and enter the late-stage or pre-IPO stage. The mid-stage PE fund allows investors to participate in the growth of such companies.
c) Late-stage or pre-IPO funds: Pre-IPO funds allow investors to invest in mature companies preparing to list on the stock exchange. |
18738 | Investment options for high networth investors
The following are some of the investment opportunities available only to HNIs and presented by AIFs:
a) Start-up funds: Angel investors looking to invest in ideas that have the potential to grow into full-scale businesses can do so through start-up funds, which provide a unique platform for bringing promoters and investors together. These funds handpick start-ups after extensive due diligence and build a portfolio with the potential to multiply capital several times.
b) Mid-stage private equity (PE) funds: Investors who are hesitant to take the risk of investing in start-ups can invest in companies in the middle of their evolution cycle. Their business valuations grow exponentially as they mature and enter the late-stage or pre-IPO stage. The mid-stage PE fund allows investors to participate in the growth of such companies.
c) Late-stage or pre-IPO funds: Pre-IPO funds allow investors to invest in mature companies preparing to list on the stock exchange. Such funds build a portfolio of companies about to go public and plan to exit them after their anticipated blockbuster listing, which can magnify returns in a relatively short period. |
18739 | Investment options for high networth investors
These funds handpick start-ups after extensive due diligence and build a portfolio with the potential to multiply capital several times.
b) Mid-stage private equity (PE) funds: Investors who are hesitant to take the risk of investing in start-ups can invest in companies in the middle of their evolution cycle. Their business valuations grow exponentially as they mature and enter the late-stage or pre-IPO stage. The mid-stage PE fund allows investors to participate in the growth of such companies.
c) Late-stage or pre-IPO funds: Pre-IPO funds allow investors to invest in mature companies preparing to list on the stock exchange. Such funds build a portfolio of companies about to go public and plan to exit them after their anticipated blockbuster listing, which can magnify returns in a relatively short period. Such funds gained immense popularity after the 2020 stock market rally that witnessed the blockbuster listing of some of the popular IPOs of B2C companies.
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. |
18740 | Investment options for high networth investors
b) Mid-stage private equity (PE) funds: Investors who are hesitant to take the risk of investing in start-ups can invest in companies in the middle of their evolution cycle. Their business valuations grow exponentially as they mature and enter the late-stage or pre-IPO stage. The mid-stage PE fund allows investors to participate in the growth of such companies.
c) Late-stage or pre-IPO funds: Pre-IPO funds allow investors to invest in mature companies preparing to list on the stock exchange. Such funds build a portfolio of companies about to go public and plan to exit them after their anticipated blockbuster listing, which can magnify returns in a relatively short period. Such funds gained immense popularity after the 2020 stock market rally that witnessed the blockbuster listing of some of the popular IPOs of B2C companies.
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. |
18741 | Investment options for high networth investors
Their business valuations grow exponentially as they mature and enter the late-stage or pre-IPO stage. The mid-stage PE fund allows investors to participate in the growth of such companies.
c) Late-stage or pre-IPO funds: Pre-IPO funds allow investors to invest in mature companies preparing to list on the stock exchange. Such funds build a portfolio of companies about to go public and plan to exit them after their anticipated blockbuster listing, which can magnify returns in a relatively short period. Such funds gained immense popularity after the 2020 stock market rally that witnessed the blockbuster listing of some of the popular IPOs of B2C companies.
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. |
18742 | Investment options for high networth investors
The mid-stage PE fund allows investors to participate in the growth of such companies.
c) Late-stage or pre-IPO funds: Pre-IPO funds allow investors to invest in mature companies preparing to list on the stock exchange. Such funds build a portfolio of companies about to go public and plan to exit them after their anticipated blockbuster listing, which can magnify returns in a relatively short period. Such funds gained immense popularity after the 2020 stock market rally that witnessed the blockbuster listing of some of the popular IPOs of B2C companies.
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility. |
18743 | Investment options for high networth investors
c) Late-stage or pre-IPO funds: Pre-IPO funds allow investors to invest in mature companies preparing to list on the stock exchange. Such funds build a portfolio of companies about to go public and plan to exit them after their anticipated blockbuster listing, which can magnify returns in a relatively short period. Such funds gained immense popularity after the 2020 stock market rally that witnessed the blockbuster listing of some of the popular IPOs of B2C companies.
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. |
18744 | Investment options for high networth investors
Such funds build a portfolio of companies about to go public and plan to exit them after their anticipated blockbuster listing, which can magnify returns in a relatively short period. Such funds gained immense popularity after the 2020 stock market rally that witnessed the blockbuster listing of some of the popular IPOs of B2C companies.
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. This is where performing credit funds come into play. |
18745 | Investment options for high networth investors
Such funds gained immense popularity after the 2020 stock market rally that witnessed the blockbuster listing of some of the popular IPOs of B2C companies.
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. This is where performing credit funds come into play. These funds specialise in credit risk assessment and, after thorough due diligence, offer credit to such companies at relatively higher rates, resulting in higher overall returns than AAA/AA-rated bonds. |
18746 | Investment options for high networth investors
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. This is where performing credit funds come into play. These funds specialise in credit risk assessment and, after thorough due diligence, offer credit to such companies at relatively higher rates, resulting in higher overall returns than AAA/AA-rated bonds. These funds are attractive for investors seeking higher returns on their fixed-income portfolio, which includes debt funds and AA/AAA-rated bonds. |
18747 | Investment options for high networth investors
d) Hedge funds: These funds invest in both publicly traded and unlisted stocks. They manage their funds using long-only and long-short strategies, with the latter allowed to use complex derivative techniques to hedge the portfolio. The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. This is where performing credit funds come into play. These funds specialise in credit risk assessment and, after thorough due diligence, offer credit to such companies at relatively higher rates, resulting in higher overall returns than AAA/AA-rated bonds. These funds are attractive for investors seeking higher returns on their fixed-income portfolio, which includes debt funds and AA/AAA-rated bonds.
f) Infrastructure Funds: These funds invest in long-term infrastructure assets owned by PSUs or private companies, such as roads, power transmission lines, and solar power plants. |
18748 | Investment options for high networth investors
The specialty of long-short funds is that they try to optimise returns in every market situation. Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. This is where performing credit funds come into play. These funds specialise in credit risk assessment and, after thorough due diligence, offer credit to such companies at relatively higher rates, resulting in higher overall returns than AAA/AA-rated bonds. These funds are attractive for investors seeking higher returns on their fixed-income portfolio, which includes debt funds and AA/AAA-rated bonds.
f) Infrastructure Funds: These funds invest in long-term infrastructure assets owned by PSUs or private companies, such as roads, power transmission lines, and solar power plants. Most infrastructure projects provide essential societal services and thus have intrinsic value. |
18749 | Investment options for high networth investors
Hence, they tend to rise and fall lower than their peers. Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. This is where performing credit funds come into play. These funds specialise in credit risk assessment and, after thorough due diligence, offer credit to such companies at relatively higher rates, resulting in higher overall returns than AAA/AA-rated bonds. These funds are attractive for investors seeking higher returns on their fixed-income portfolio, which includes debt funds and AA/AAA-rated bonds.
f) Infrastructure Funds: These funds invest in long-term infrastructure assets owned by PSUs or private companies, such as roads, power transmission lines, and solar power plants. Most infrastructure projects provide essential societal services and thus have intrinsic value. These assets generate cashflows in the form of annuities backed by Central and State governments, lowering the risk of future cash flows significantly. |
18750 | Investment options for high networth investors
Investors with stock and mutual fund portfolios can diversify with hedge funds to reduce volatility.
e) Performing credit funds: Many operating companies cannot raise funds from banks and NBFCs due to their size or credit ratings. This is where performing credit funds come into play. These funds specialise in credit risk assessment and, after thorough due diligence, offer credit to such companies at relatively higher rates, resulting in higher overall returns than AAA/AA-rated bonds. These funds are attractive for investors seeking higher returns on their fixed-income portfolio, which includes debt funds and AA/AAA-rated bonds.
f) Infrastructure Funds: These funds invest in long-term infrastructure assets owned by PSUs or private companies, such as roads, power transmission lines, and solar power plants. Most infrastructure projects provide essential societal services and thus have intrinsic value. These assets generate cashflows in the form of annuities backed by Central and State governments, lowering the risk of future cash flows significantly. These annuities are regularly distributed by funds to the investors, giving them the characteristic of yield. |
18751 | Investment options for high networth investors
This is where performing credit funds come into play. These funds specialise in credit risk assessment and, after thorough due diligence, offer credit to such companies at relatively higher rates, resulting in higher overall returns than AAA/AA-rated bonds. These funds are attractive for investors seeking higher returns on their fixed-income portfolio, which includes debt funds and AA/AAA-rated bonds.
f) Infrastructure Funds: These funds invest in long-term infrastructure assets owned by PSUs or private companies, such as roads, power transmission lines, and solar power plants. Most infrastructure projects provide essential societal services and thus have intrinsic value. These assets generate cashflows in the form of annuities backed by Central and State governments, lowering the risk of future cash flows significantly. These annuities are regularly distributed by funds to the investors, giving them the characteristic of yield. When the fund reaches maturity, the assets may be sold to another fund or infrastructure trust, resulting in capital gains in overall fund returns.
g) Venture debt funds: Start-up promoters frequently want to raise money without selling equity. |
18752 | Investment options for high networth investors
These funds are attractive for investors seeking higher returns on their fixed-income portfolio, which includes debt funds and AA/AAA-rated bonds.
f) Infrastructure Funds: These funds invest in long-term infrastructure assets owned by PSUs or private companies, such as roads, power transmission lines, and solar power plants. Most infrastructure projects provide essential societal services and thus have intrinsic value. These assets generate cashflows in the form of annuities backed by Central and State governments, lowering the risk of future cash flows significantly. These annuities are regularly distributed by funds to the investors, giving them the characteristic of yield. When the fund reaches maturity, the assets may be sold to another fund or infrastructure trust, resulting in capital gains in overall fund returns.
g) Venture debt funds: Start-up promoters frequently want to raise money without selling equity. As start-ups, they are unable to approach banks and mutual funds. This is where venture debt funds, which specialise in providing credit to start-ups, come in handy. |
18753 | Investment options for high networth investors
f) Infrastructure Funds: These funds invest in long-term infrastructure assets owned by PSUs or private companies, such as roads, power transmission lines, and solar power plants. Most infrastructure projects provide essential societal services and thus have intrinsic value. These assets generate cashflows in the form of annuities backed by Central and State governments, lowering the risk of future cash flows significantly. These annuities are regularly distributed by funds to the investors, giving them the characteristic of yield. When the fund reaches maturity, the assets may be sold to another fund or infrastructure trust, resulting in capital gains in overall fund returns.
g) Venture debt funds: Start-up promoters frequently want to raise money without selling equity. As start-ups, they are unable to approach banks and mutual funds. This is where venture debt funds, which specialise in providing credit to start-ups, come in handy. It goes without saying that such AIFs help these start-ups raise funds at high rates. |
18754 | Investment options for high networth investors
Most infrastructure projects provide essential societal services and thus have intrinsic value. These assets generate cashflows in the form of annuities backed by Central and State governments, lowering the risk of future cash flows significantly. These annuities are regularly distributed by funds to the investors, giving them the characteristic of yield. When the fund reaches maturity, the assets may be sold to another fund or infrastructure trust, resulting in capital gains in overall fund returns.
g) Venture debt funds: Start-up promoters frequently want to raise money without selling equity. As start-ups, they are unable to approach banks and mutual funds. This is where venture debt funds, which specialise in providing credit to start-ups, come in handy. It goes without saying that such AIFs help these start-ups raise funds at high rates. The higher returns of such funds and risk management appeal to risk-taking, yield-hungry investors.
The above fund list is not exhaustive but highlights some of the unique investment opportunities available to HNIs through AIFs. |
18755 | Investment options for high networth investors
These assets generate cashflows in the form of annuities backed by Central and State governments, lowering the risk of future cash flows significantly. These annuities are regularly distributed by funds to the investors, giving them the characteristic of yield. When the fund reaches maturity, the assets may be sold to another fund or infrastructure trust, resulting in capital gains in overall fund returns.
g) Venture debt funds: Start-up promoters frequently want to raise money without selling equity. As start-ups, they are unable to approach banks and mutual funds. This is where venture debt funds, which specialise in providing credit to start-ups, come in handy. It goes without saying that such AIFs help these start-ups raise funds at high rates. The higher returns of such funds and risk management appeal to risk-taking, yield-hungry investors.
The above fund list is not exhaustive but highlights some of the unique investment opportunities available to HNIs through AIFs. Many more such options are available to investors, such as special situation funds, real estate yield funds, and so on. |
18756 | Investment options for high networth investors
These annuities are regularly distributed by funds to the investors, giving them the characteristic of yield. When the fund reaches maturity, the assets may be sold to another fund or infrastructure trust, resulting in capital gains in overall fund returns.
g) Venture debt funds: Start-up promoters frequently want to raise money without selling equity. As start-ups, they are unable to approach banks and mutual funds. This is where venture debt funds, which specialise in providing credit to start-ups, come in handy. It goes without saying that such AIFs help these start-ups raise funds at high rates. The higher returns of such funds and risk management appeal to risk-taking, yield-hungry investors.
The above fund list is not exhaustive but highlights some of the unique investment opportunities available to HNIs through AIFs. Many more such options are available to investors, such as special situation funds, real estate yield funds, and so on.
Along with the investment opportunities presented by AIFs, some other alternatives available to HNIs are:
2. |
18757 | Investment options for high networth investors
When the fund reaches maturity, the assets may be sold to another fund or infrastructure trust, resulting in capital gains in overall fund returns.
g) Venture debt funds: Start-up promoters frequently want to raise money without selling equity. As start-ups, they are unable to approach banks and mutual funds. This is where venture debt funds, which specialise in providing credit to start-ups, come in handy. It goes without saying that such AIFs help these start-ups raise funds at high rates. The higher returns of such funds and risk management appeal to risk-taking, yield-hungry investors.
The above fund list is not exhaustive but highlights some of the unique investment opportunities available to HNIs through AIFs. Many more such options are available to investors, such as special situation funds, real estate yield funds, and so on.
Along with the investment opportunities presented by AIFs, some other alternatives available to HNIs are:
2. Portfolio Management Services (PMS)
PMS guidelines in India date back to 1993, but this investment avenue has grown in popularity with HNIs recently. |
18758 | Investment options for high networth investors
As start-ups, they are unable to approach banks and mutual funds. This is where venture debt funds, which specialise in providing credit to start-ups, come in handy. It goes without saying that such AIFs help these start-ups raise funds at high rates. The higher returns of such funds and risk management appeal to risk-taking, yield-hungry investors.
The above fund list is not exhaustive but highlights some of the unique investment opportunities available to HNIs through AIFs. Many more such options are available to investors, such as special situation funds, real estate yield funds, and so on.
Along with the investment opportunities presented by AIFs, some other alternatives available to HNIs are:
2. Portfolio Management Services (PMS)
PMS guidelines in India date back to 1993, but this investment avenue has grown in popularity with HNIs recently. The growing financialisation of savings, the formalisation of the economy, and the growing prosperity of tier 2 and 3 cities have resulted in an increase in AUM (excluding EPFO/PF), which stood at ₹5.28 lakh crore as of July 2023. |
18759 | Investment options for high networth investors
The higher returns of such funds and risk management appeal to risk-taking, yield-hungry investors.
The above fund list is not exhaustive but highlights some of the unique investment opportunities available to HNIs through AIFs. Many more such options are available to investors, such as special situation funds, real estate yield funds, and so on.
Along with the investment opportunities presented by AIFs, some other alternatives available to HNIs are:
2. Portfolio Management Services (PMS)
PMS guidelines in India date back to 1993, but this investment avenue has grown in popularity with HNIs recently. The growing financialisation of savings, the formalisation of the economy, and the growing prosperity of tier 2 and 3 cities have resulted in an increase in AUM (excluding EPFO/PF), which stood at ₹5.28 lakh crore as of July 2023. Because the minimum investment is ₹50 lakh, this option is also only available to HNIs. |
18760 | Investment options for high networth investors
The above fund list is not exhaustive but highlights some of the unique investment opportunities available to HNIs through AIFs. Many more such options are available to investors, such as special situation funds, real estate yield funds, and so on.
Along with the investment opportunities presented by AIFs, some other alternatives available to HNIs are:
2. Portfolio Management Services (PMS)
PMS guidelines in India date back to 1993, but this investment avenue has grown in popularity with HNIs recently. The growing financialisation of savings, the formalisation of the economy, and the growing prosperity of tier 2 and 3 cities have resulted in an increase in AUM (excluding EPFO/PF), which stood at ₹5.28 lakh crore as of July 2023. Because the minimum investment is ₹50 lakh, this option is also only available to HNIs. Both PMS and mutual funds provide expert guidance in navigating volatile markets and seizing investment opportunities that help create wealth. |
18761 | Investment options for high networth investors
Many more such options are available to investors, such as special situation funds, real estate yield funds, and so on.
Along with the investment opportunities presented by AIFs, some other alternatives available to HNIs are:
2. Portfolio Management Services (PMS)
PMS guidelines in India date back to 1993, but this investment avenue has grown in popularity with HNIs recently. The growing financialisation of savings, the formalisation of the economy, and the growing prosperity of tier 2 and 3 cities have resulted in an increase in AUM (excluding EPFO/PF), which stood at ₹5.28 lakh crore as of July 2023. Because the minimum investment is ₹50 lakh, this option is also only available to HNIs. Both PMS and mutual funds provide expert guidance in navigating volatile markets and seizing investment opportunities that help create wealth. Because mutual funds cater to retail investors, their guidelines are relatively stringent, and compliance is rigorous. |
18762 | Investment options for high networth investors
Along with the investment opportunities presented by AIFs, some other alternatives available to HNIs are:
2. Portfolio Management Services (PMS)
PMS guidelines in India date back to 1993, but this investment avenue has grown in popularity with HNIs recently. The growing financialisation of savings, the formalisation of the economy, and the growing prosperity of tier 2 and 3 cities have resulted in an increase in AUM (excluding EPFO/PF), which stood at ₹5.28 lakh crore as of July 2023. Because the minimum investment is ₹50 lakh, this option is also only available to HNIs. Both PMS and mutual funds provide expert guidance in navigating volatile markets and seizing investment opportunities that help create wealth. Because mutual funds cater to retail investors, their guidelines are relatively stringent, and compliance is rigorous.
Regarding PMS, the investment guidelines are somewhat more flexible, allowing portfolio managers to outperform mutual funds. |
18763 | Investment options for high networth investors
Portfolio Management Services (PMS)
PMS guidelines in India date back to 1993, but this investment avenue has grown in popularity with HNIs recently. The growing financialisation of savings, the formalisation of the economy, and the growing prosperity of tier 2 and 3 cities have resulted in an increase in AUM (excluding EPFO/PF), which stood at ₹5.28 lakh crore as of July 2023. Because the minimum investment is ₹50 lakh, this option is also only available to HNIs. Both PMS and mutual funds provide expert guidance in navigating volatile markets and seizing investment opportunities that help create wealth. Because mutual funds cater to retail investors, their guidelines are relatively stringent, and compliance is rigorous.
Regarding PMS, the investment guidelines are somewhat more flexible, allowing portfolio managers to outperform mutual funds. Another feature that appeals to HNIs is that the beneficial ownership of securities is that of the investors, as opposed to mutual funds, where the ownership is that of the fund. |
18764 | Investment options for high networth investors
The growing financialisation of savings, the formalisation of the economy, and the growing prosperity of tier 2 and 3 cities have resulted in an increase in AUM (excluding EPFO/PF), which stood at ₹5.28 lakh crore as of July 2023. Because the minimum investment is ₹50 lakh, this option is also only available to HNIs. Both PMS and mutual funds provide expert guidance in navigating volatile markets and seizing investment opportunities that help create wealth. Because mutual funds cater to retail investors, their guidelines are relatively stringent, and compliance is rigorous.
Regarding PMS, the investment guidelines are somewhat more flexible, allowing portfolio managers to outperform mutual funds. Another feature that appeals to HNIs is that the beneficial ownership of securities is that of the investors, as opposed to mutual funds, where the ownership is that of the fund. Furthermore, PMS is available in two options: discretionary and non-discretionary. In the former case, the portfolio managers make all decisions; in the latter case, the investor makes all decisions. |
18765 | Investment options for high networth investors
Because the minimum investment is ₹50 lakh, this option is also only available to HNIs. Both PMS and mutual funds provide expert guidance in navigating volatile markets and seizing investment opportunities that help create wealth. Because mutual funds cater to retail investors, their guidelines are relatively stringent, and compliance is rigorous.
Regarding PMS, the investment guidelines are somewhat more flexible, allowing portfolio managers to outperform mutual funds. Another feature that appeals to HNIs is that the beneficial ownership of securities is that of the investors, as opposed to mutual funds, where the ownership is that of the fund. Furthermore, PMS is available in two options: discretionary and non-discretionary. In the former case, the portfolio managers make all decisions; in the latter case, the investor makes all decisions.
3. Market-linked Debentures (MLD)
For HNIs looking to invest a part of their investible surplus in debt, MLDs can be a prudent option. |
18766 | Investment options for high networth investors
Both PMS and mutual funds provide expert guidance in navigating volatile markets and seizing investment opportunities that help create wealth. Because mutual funds cater to retail investors, their guidelines are relatively stringent, and compliance is rigorous.
Regarding PMS, the investment guidelines are somewhat more flexible, allowing portfolio managers to outperform mutual funds. Another feature that appeals to HNIs is that the beneficial ownership of securities is that of the investors, as opposed to mutual funds, where the ownership is that of the fund. Furthermore, PMS is available in two options: discretionary and non-discretionary. In the former case, the portfolio managers make all decisions; in the latter case, the investor makes all decisions.
3. Market-linked Debentures (MLD)
For HNIs looking to invest a part of their investible surplus in debt, MLDs can be a prudent option. MLDs are non-convertible debt instruments whose returns are tied to a specific financial market benchmark, such as the Nifty 50, the BSE Sensex, or the 10-year G-Sec. |
18767 | Investment options for high networth investors
Regarding PMS, the investment guidelines are somewhat more flexible, allowing portfolio managers to outperform mutual funds. Another feature that appeals to HNIs is that the beneficial ownership of securities is that of the investors, as opposed to mutual funds, where the ownership is that of the fund. Furthermore, PMS is available in two options: discretionary and non-discretionary. In the former case, the portfolio managers make all decisions; in the latter case, the investor makes all decisions.
3. Market-linked Debentures (MLD)
For HNIs looking to invest a part of their investible surplus in debt, MLDs can be a prudent option. MLDs are non-convertible debt instruments whose returns are tied to a specific financial market benchmark, such as the Nifty 50, the BSE Sensex, or the 10-year G-Sec. The maturity periods of MLDs can vary from one year to five years. |
18768 | Investment options for high networth investors
Regarding PMS, the investment guidelines are somewhat more flexible, allowing portfolio managers to outperform mutual funds. Another feature that appeals to HNIs is that the beneficial ownership of securities is that of the investors, as opposed to mutual funds, where the ownership is that of the fund. Furthermore, PMS is available in two options: discretionary and non-discretionary. In the former case, the portfolio managers make all decisions; in the latter case, the investor makes all decisions.
3. Market-linked Debentures (MLD)
For HNIs looking to invest a part of their investible surplus in debt, MLDs can be a prudent option. MLDs are non-convertible debt instruments whose returns are tied to a specific financial market benchmark, such as the Nifty 50, the BSE Sensex, or the 10-year G-Sec. The maturity periods of MLDs can vary from one year to five years.
Though the minimum investment for MLDs is ₹1 lakh, making it easier even for small investors to invest in them, they are more popular with the HNIs owing to the complex structure of these debentures. |
18769 | Investment options for high networth investors
Furthermore, PMS is available in two options: discretionary and non-discretionary. In the former case, the portfolio managers make all decisions; in the latter case, the investor makes all decisions.
3. Market-linked Debentures (MLD)
For HNIs looking to invest a part of their investible surplus in debt, MLDs can be a prudent option. MLDs are non-convertible debt instruments whose returns are tied to a specific financial market benchmark, such as the Nifty 50, the BSE Sensex, or the 10-year G-Sec. The maturity periods of MLDs can vary from one year to five years.
Though the minimum investment for MLDs is ₹1 lakh, making it easier even for small investors to invest in them, they are more popular with the HNIs owing to the complex structure of these debentures. MLDs, unlike traditional fixed-income securities, do not provide periodic interest payments before maturity. |
18770 | Investment options for high networth investors
In the former case, the portfolio managers make all decisions; in the latter case, the investor makes all decisions.
3. Market-linked Debentures (MLD)
For HNIs looking to invest a part of their investible surplus in debt, MLDs can be a prudent option. MLDs are non-convertible debt instruments whose returns are tied to a specific financial market benchmark, such as the Nifty 50, the BSE Sensex, or the 10-year G-Sec. The maturity periods of MLDs can vary from one year to five years.
Though the minimum investment for MLDs is ₹1 lakh, making it easier even for small investors to invest in them, they are more popular with the HNIs owing to the complex structure of these debentures. MLDs, unlike traditional fixed-income securities, do not provide periodic interest payments before maturity. Income multipliers and principal protection are common features of equity-linked MLDs. |
18771 | Investment options for high networth investors
3. Market-linked Debentures (MLD)
For HNIs looking to invest a part of their investible surplus in debt, MLDs can be a prudent option. MLDs are non-convertible debt instruments whose returns are tied to a specific financial market benchmark, such as the Nifty 50, the BSE Sensex, or the 10-year G-Sec. The maturity periods of MLDs can vary from one year to five years.
Though the minimum investment for MLDs is ₹1 lakh, making it easier even for small investors to invest in them, they are more popular with the HNIs owing to the complex structure of these debentures. MLDs, unlike traditional fixed-income securities, do not provide periodic interest payments before maturity. Income multipliers and principal protection are common features of equity-linked MLDs. In the former case, the MLDs can generate a return that is a multiple of the underlying index’s return. |
18772 | Investment options for high networth investors
MLDs are non-convertible debt instruments whose returns are tied to a specific financial market benchmark, such as the Nifty 50, the BSE Sensex, or the 10-year G-Sec. The maturity periods of MLDs can vary from one year to five years.
Though the minimum investment for MLDs is ₹1 lakh, making it easier even for small investors to invest in them, they are more popular with the HNIs owing to the complex structure of these debentures. MLDs, unlike traditional fixed-income securities, do not provide periodic interest payments before maturity. Income multipliers and principal protection are common features of equity-linked MLDs. In the former case, the MLDs can generate a return that is a multiple of the underlying index’s return. This increases the likelihood of a higher overall return for a more minor market movement. The latter option safeguards the principal (up to the face value of the debenture) in the event of an adverse market movement. |
18773 | Investment options for high networth investors
The maturity periods of MLDs can vary from one year to five years.
Though the minimum investment for MLDs is ₹1 lakh, making it easier even for small investors to invest in them, they are more popular with the HNIs owing to the complex structure of these debentures. MLDs, unlike traditional fixed-income securities, do not provide periodic interest payments before maturity. Income multipliers and principal protection are common features of equity-linked MLDs. In the former case, the MLDs can generate a return that is a multiple of the underlying index’s return. This increases the likelihood of a higher overall return for a more minor market movement. The latter option safeguards the principal (up to the face value of the debenture) in the event of an adverse market movement. This feature allows even investors with a moderate risk tolerance to easily participate in the market.
From the discussion above, it is amply evident that HNIs have various alternative avenues to grow their wealth. |
18774 | Investment options for high networth investors
Though the minimum investment for MLDs is ₹1 lakh, making it easier even for small investors to invest in them, they are more popular with the HNIs owing to the complex structure of these debentures. MLDs, unlike traditional fixed-income securities, do not provide periodic interest payments before maturity. Income multipliers and principal protection are common features of equity-linked MLDs. In the former case, the MLDs can generate a return that is a multiple of the underlying index’s return. This increases the likelihood of a higher overall return for a more minor market movement. The latter option safeguards the principal (up to the face value of the debenture) in the event of an adverse market movement. This feature allows even investors with a moderate risk tolerance to easily participate in the market.
From the discussion above, it is amply evident that HNIs have various alternative avenues to grow their wealth. The distinct value proposition of AIF, PMS, and MLDs, with unique features, distinctive risk-return profiles, and low correlation with traditional asset classes, makes them genuinely deserving of a place in the portfolio of every HNI. |
18775 | Investment options for high networth investors
MLDs, unlike traditional fixed-income securities, do not provide periodic interest payments before maturity. Income multipliers and principal protection are common features of equity-linked MLDs. In the former case, the MLDs can generate a return that is a multiple of the underlying index’s return. This increases the likelihood of a higher overall return for a more minor market movement. The latter option safeguards the principal (up to the face value of the debenture) in the event of an adverse market movement. This feature allows even investors with a moderate risk tolerance to easily participate in the market.
From the discussion above, it is amply evident that HNIs have various alternative avenues to grow their wealth. The distinct value proposition of AIF, PMS, and MLDs, with unique features, distinctive risk-return profiles, and low correlation with traditional asset classes, makes them genuinely deserving of a place in the portfolio of every HNI. Before investing, investors should conduct thorough research to understand how these investment options work. |
18776 | Investment options for high networth investors
Income multipliers and principal protection are common features of equity-linked MLDs. In the former case, the MLDs can generate a return that is a multiple of the underlying index’s return. This increases the likelihood of a higher overall return for a more minor market movement. The latter option safeguards the principal (up to the face value of the debenture) in the event of an adverse market movement. This feature allows even investors with a moderate risk tolerance to easily participate in the market.
From the discussion above, it is amply evident that HNIs have various alternative avenues to grow their wealth. The distinct value proposition of AIF, PMS, and MLDs, with unique features, distinctive risk-return profiles, and low correlation with traditional asset classes, makes them genuinely deserving of a place in the portfolio of every HNI. Before investing, investors should conduct thorough research to understand how these investment options work. It’s important to consider the past track record and management team before making investment decisions. |
18777 | Investment options for high networth investors
In the former case, the MLDs can generate a return that is a multiple of the underlying index’s return. This increases the likelihood of a higher overall return for a more minor market movement. The latter option safeguards the principal (up to the face value of the debenture) in the event of an adverse market movement. This feature allows even investors with a moderate risk tolerance to easily participate in the market.
From the discussion above, it is amply evident that HNIs have various alternative avenues to grow their wealth. The distinct value proposition of AIF, PMS, and MLDs, with unique features, distinctive risk-return profiles, and low correlation with traditional asset classes, makes them genuinely deserving of a place in the portfolio of every HNI. Before investing, investors should conduct thorough research to understand how these investment options work. It’s important to consider the past track record and management team before making investment decisions. Consultation with investment advisors who are knowledgeable in this area can undoubtedly be beneficial. |
18778 | Investment options for high networth investors
This increases the likelihood of a higher overall return for a more minor market movement. The latter option safeguards the principal (up to the face value of the debenture) in the event of an adverse market movement. This feature allows even investors with a moderate risk tolerance to easily participate in the market.
From the discussion above, it is amply evident that HNIs have various alternative avenues to grow their wealth. The distinct value proposition of AIF, PMS, and MLDs, with unique features, distinctive risk-return profiles, and low correlation with traditional asset classes, makes them genuinely deserving of a place in the portfolio of every HNI. Before investing, investors should conduct thorough research to understand how these investment options work. It’s important to consider the past track record and management team before making investment decisions. Consultation with investment advisors who are knowledgeable in this area can undoubtedly be beneficial.
The author is President & Head, Nuvama Wealth |
18779 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
The stock of India’s most valued company, Reliance Industries (RIL), after a decade-long underperformance — from 2007 to 2017 — has managed to treble over the last six years.
However, when you look at the stock on a three-year basis, RIL with 11 per cent CAGR returns (including the value of demerged Jio Financial Services), has underperformed Nifty 50 which has delivered CAGR returns of a little over 14 per cent in the same time period. This however is nothing to fret about. The stock of RIL has typically tended to underperform whenever the company has been in a heavy investment phase, something that it has embarked on in its green energy ventures. |
18780 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
The stock of India’s most valued company, Reliance Industries (RIL), after a decade-long underperformance — from 2007 to 2017 — has managed to treble over the last six years.
However, when you look at the stock on a three-year basis, RIL with 11 per cent CAGR returns (including the value of demerged Jio Financial Services), has underperformed Nifty 50 which has delivered CAGR returns of a little over 14 per cent in the same time period. This however is nothing to fret about. The stock of RIL has typically tended to underperform whenever the company has been in a heavy investment phase, something that it has embarked on in its green energy ventures.
With the stock still leaving some money on the table at current levels, long-term investors can accumulate it on dips for four reasons — one, reasonable valuations; two, being at pole position in India’s high-growth digital and retail business; three, potential for large-scale value creation, similar to its digital and retail forays, in the renewable energy space (not reflected in current valuations); four, stable O2C business. |
18781 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
However, when you look at the stock on a three-year basis, RIL with 11 per cent CAGR returns (including the value of demerged Jio Financial Services), has underperformed Nifty 50 which has delivered CAGR returns of a little over 14 per cent in the same time period. This however is nothing to fret about. The stock of RIL has typically tended to underperform whenever the company has been in a heavy investment phase, something that it has embarked on in its green energy ventures.
With the stock still leaving some money on the table at current levels, long-term investors can accumulate it on dips for four reasons — one, reasonable valuations; two, being at pole position in India’s high-growth digital and retail business; three, potential for large-scale value creation, similar to its digital and retail forays, in the renewable energy space (not reflected in current valuations); four, stable O2C business.
Growth engines
The launch of Jio’s data services in 2016, maturation of the retail business and subsequent stake sales in FY21 were the key catalysts that drove the stock’s outperformance in the last six years. |
18782 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
This however is nothing to fret about. The stock of RIL has typically tended to underperform whenever the company has been in a heavy investment phase, something that it has embarked on in its green energy ventures.
With the stock still leaving some money on the table at current levels, long-term investors can accumulate it on dips for four reasons — one, reasonable valuations; two, being at pole position in India’s high-growth digital and retail business; three, potential for large-scale value creation, similar to its digital and retail forays, in the renewable energy space (not reflected in current valuations); four, stable O2C business.
Growth engines
The launch of Jio’s data services in 2016, maturation of the retail business and subsequent stake sales in FY21 were the key catalysts that drove the stock’s outperformance in the last six years. Although there has already been a significant re-rating in valuation the markets have assigned to both businesses, scope for further outperformance from these businesses remains, given the opportunity ahead. |
18783 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
With the stock still leaving some money on the table at current levels, long-term investors can accumulate it on dips for four reasons — one, reasonable valuations; two, being at pole position in India’s high-growth digital and retail business; three, potential for large-scale value creation, similar to its digital and retail forays, in the renewable energy space (not reflected in current valuations); four, stable O2C business.
Growth engines
The launch of Jio’s data services in 2016, maturation of the retail business and subsequent stake sales in FY21 were the key catalysts that drove the stock’s outperformance in the last six years. Although there has already been a significant re-rating in valuation the markets have assigned to both businesses, scope for further outperformance from these businesses remains, given the opportunity ahead.
Reliance Jio: For one, with Reliance Jio emerging as the largest telecom services company in what is largely a duopolistic market (given survival issues at Vodafone Idea) in India, the growth potential remains strong as 5G will drive advances over the next few years and new 5G enabled use cases will create guzzling growth in data consumption, providing scope for higher ARPUs. |
18784 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Growth engines
The launch of Jio’s data services in 2016, maturation of the retail business and subsequent stake sales in FY21 were the key catalysts that drove the stock’s outperformance in the last six years. Although there has already been a significant re-rating in valuation the markets have assigned to both businesses, scope for further outperformance from these businesses remains, given the opportunity ahead.
Reliance Jio: For one, with Reliance Jio emerging as the largest telecom services company in what is largely a duopolistic market (given survival issues at Vodafone Idea) in India, the growth potential remains strong as 5G will drive advances over the next few years and new 5G enabled use cases will create guzzling growth in data consumption, providing scope for higher ARPUs. Reliance Jio has offerings across the spectrum of wireless, wireline/broadband, enterprise/cloud services and allied retail/enterprise digital offerings that make its services sticky for customers. |
18785 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Although there has already been a significant re-rating in valuation the markets have assigned to both businesses, scope for further outperformance from these businesses remains, given the opportunity ahead.
Reliance Jio: For one, with Reliance Jio emerging as the largest telecom services company in what is largely a duopolistic market (given survival issues at Vodafone Idea) in India, the growth potential remains strong as 5G will drive advances over the next few years and new 5G enabled use cases will create guzzling growth in data consumption, providing scope for higher ARPUs. Reliance Jio has offerings across the spectrum of wireless, wireline/broadband, enterprise/cloud services and allied retail/enterprise digital offerings that make its services sticky for customers.
In such a scenario, its dominant position in telecom along with second player Bharti Airtel is likely well entrenched for the foreseeable future in India’s digital ecosystem. |
18786 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Although there has already been a significant re-rating in valuation the markets have assigned to both businesses, scope for further outperformance from these businesses remains, given the opportunity ahead.
Reliance Jio: For one, with Reliance Jio emerging as the largest telecom services company in what is largely a duopolistic market (given survival issues at Vodafone Idea) in India, the growth potential remains strong as 5G will drive advances over the next few years and new 5G enabled use cases will create guzzling growth in data consumption, providing scope for higher ARPUs. Reliance Jio has offerings across the spectrum of wireless, wireline/broadband, enterprise/cloud services and allied retail/enterprise digital offerings that make its services sticky for customers.
In such a scenario, its dominant position in telecom along with second player Bharti Airtel is likely well entrenched for the foreseeable future in India’s digital ecosystem. These factors position it advantageously to sustain or increase its operating margins in a growing industry. |
18787 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Reliance Jio: For one, with Reliance Jio emerging as the largest telecom services company in what is largely a duopolistic market (given survival issues at Vodafone Idea) in India, the growth potential remains strong as 5G will drive advances over the next few years and new 5G enabled use cases will create guzzling growth in data consumption, providing scope for higher ARPUs. Reliance Jio has offerings across the spectrum of wireless, wireline/broadband, enterprise/cloud services and allied retail/enterprise digital offerings that make its services sticky for customers.
In such a scenario, its dominant position in telecom along with second player Bharti Airtel is likely well entrenched for the foreseeable future in India’s digital ecosystem. These factors position it advantageously to sustain or increase its operating margins in a growing industry.
Reliance Retail Ventures: From a modest 1,691 stores in FY14, the retail business has grown to 18,040 stores (and over 66 million square feet of retail space) by FY23. |
18788 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Reliance Jio has offerings across the spectrum of wireless, wireline/broadband, enterprise/cloud services and allied retail/enterprise digital offerings that make its services sticky for customers.
In such a scenario, its dominant position in telecom along with second player Bharti Airtel is likely well entrenched for the foreseeable future in India’s digital ecosystem. These factors position it advantageously to sustain or increase its operating margins in a growing industry.
Reliance Retail Ventures: From a modest 1,691 stores in FY14, the retail business has grown to 18,040 stores (and over 66 million square feet of retail space) by FY23. Reliance Retail is the largest player in the country in the organised retail segment, operating brick-and-mortar, e-commerce, cash and carry, B2C, and B2B formats across the retail supply chain. |
18789 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Reliance Jio has offerings across the spectrum of wireless, wireline/broadband, enterprise/cloud services and allied retail/enterprise digital offerings that make its services sticky for customers.
In such a scenario, its dominant position in telecom along with second player Bharti Airtel is likely well entrenched for the foreseeable future in India’s digital ecosystem. These factors position it advantageously to sustain or increase its operating margins in a growing industry.
Reliance Retail Ventures: From a modest 1,691 stores in FY14, the retail business has grown to 18,040 stores (and over 66 million square feet of retail space) by FY23. Reliance Retail is the largest player in the country in the organised retail segment, operating brick-and-mortar, e-commerce, cash and carry, B2C, and B2B formats across the retail supply chain. With a low 3 per cent share of the market, there is scope for huge expansion from the combination of market share gains and/in a high-growth market where the consumption theme is picking steam, driven by growth in per capita income. |
18790 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
In such a scenario, its dominant position in telecom along with second player Bharti Airtel is likely well entrenched for the foreseeable future in India’s digital ecosystem. These factors position it advantageously to sustain or increase its operating margins in a growing industry.
Reliance Retail Ventures: From a modest 1,691 stores in FY14, the retail business has grown to 18,040 stores (and over 66 million square feet of retail space) by FY23. Reliance Retail is the largest player in the country in the organised retail segment, operating brick-and-mortar, e-commerce, cash and carry, B2C, and B2B formats across the retail supply chain. With a low 3 per cent share of the market, there is scope for huge expansion from the combination of market share gains and/in a high-growth market where the consumption theme is picking steam, driven by growth in per capita income.
For example, in the US, organised retail giant Walmart today has a little over 10 per cent share of the retail industry. |
18791 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
These factors position it advantageously to sustain or increase its operating margins in a growing industry.
Reliance Retail Ventures: From a modest 1,691 stores in FY14, the retail business has grown to 18,040 stores (and over 66 million square feet of retail space) by FY23. Reliance Retail is the largest player in the country in the organised retail segment, operating brick-and-mortar, e-commerce, cash and carry, B2C, and B2B formats across the retail supply chain. With a low 3 per cent share of the market, there is scope for huge expansion from the combination of market share gains and/in a high-growth market where the consumption theme is picking steam, driven by growth in per capita income.
For example, in the US, organised retail giant Walmart today has a little over 10 per cent share of the retail industry. While how exactly things will pan out in the Indian retail industry is out in the open, this can provide a perspective on the potential growth for Reliance Retail. |
18792 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Reliance Retail Ventures: From a modest 1,691 stores in FY14, the retail business has grown to 18,040 stores (and over 66 million square feet of retail space) by FY23. Reliance Retail is the largest player in the country in the organised retail segment, operating brick-and-mortar, e-commerce, cash and carry, B2C, and B2B formats across the retail supply chain. With a low 3 per cent share of the market, there is scope for huge expansion from the combination of market share gains and/in a high-growth market where the consumption theme is picking steam, driven by growth in per capita income.
For example, in the US, organised retail giant Walmart today has a little over 10 per cent share of the retail industry. While how exactly things will pan out in the Indian retail industry is out in the open, this can provide a perspective on the potential growth for Reliance Retail.
In recent years, Reliance Retail business has witnessed solid growth with FY21-23 revenue and EBITDA CAGR of 38 and 50 per cent respectively fuelled by a combination of store additions, acquisitions (totalling to $1.2 billion) and its phygital model with acquisitions such as Netmeds, Clovia being digital brands. |
18793 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
With a low 3 per cent share of the market, there is scope for huge expansion from the combination of market share gains and/in a high-growth market where the consumption theme is picking steam, driven by growth in per capita income.
For example, in the US, organised retail giant Walmart today has a little over 10 per cent share of the retail industry. While how exactly things will pan out in the Indian retail industry is out in the open, this can provide a perspective on the potential growth for Reliance Retail.
In recent years, Reliance Retail business has witnessed solid growth with FY21-23 revenue and EBITDA CAGR of 38 and 50 per cent respectively fuelled by a combination of store additions, acquisitions (totalling to $1.2 billion) and its phygital model with acquisitions such as Netmeds, Clovia being digital brands. Besides apparel, grocery and electronics, the company, through acquisitions, has gained foothold in newer segments such as pharmacy (Netmeds), fashion (Zivame, Clovia) and D2C (Urban ladder), which will drive growth in the medium term. |
18794 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
For example, in the US, organised retail giant Walmart today has a little over 10 per cent share of the retail industry. While how exactly things will pan out in the Indian retail industry is out in the open, this can provide a perspective on the potential growth for Reliance Retail.
In recent years, Reliance Retail business has witnessed solid growth with FY21-23 revenue and EBITDA CAGR of 38 and 50 per cent respectively fuelled by a combination of store additions, acquisitions (totalling to $1.2 billion) and its phygital model with acquisitions such as Netmeds, Clovia being digital brands. Besides apparel, grocery and electronics, the company, through acquisitions, has gained foothold in newer segments such as pharmacy (Netmeds), fashion (Zivame, Clovia) and D2C (Urban ladder), which will drive growth in the medium term.
With dominance in digital and retail ecosystem and scope to enhance synergies across these, Reliance is strategically positioned to garner a good share of the consumer spending which will happen over the next decades with its consumer facing businesses. |
18795 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
In recent years, Reliance Retail business has witnessed solid growth with FY21-23 revenue and EBITDA CAGR of 38 and 50 per cent respectively fuelled by a combination of store additions, acquisitions (totalling to $1.2 billion) and its phygital model with acquisitions such as Netmeds, Clovia being digital brands. Besides apparel, grocery and electronics, the company, through acquisitions, has gained foothold in newer segments such as pharmacy (Netmeds), fashion (Zivame, Clovia) and D2C (Urban ladder), which will drive growth in the medium term.
With dominance in digital and retail ecosystem and scope to enhance synergies across these, Reliance is strategically positioned to garner a good share of the consumer spending which will happen over the next decades with its consumer facing businesses.
O2C & E&P
RIL’s traditional businesses — O2C and exploration (E&P) — still account for 45-50 per cent of RIL’s consolidated EBITDA. |
18796 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Besides apparel, grocery and electronics, the company, through acquisitions, has gained foothold in newer segments such as pharmacy (Netmeds), fashion (Zivame, Clovia) and D2C (Urban ladder), which will drive growth in the medium term.
With dominance in digital and retail ecosystem and scope to enhance synergies across these, Reliance is strategically positioned to garner a good share of the consumer spending which will happen over the next decades with its consumer facing businesses.
O2C & E&P
RIL’s traditional businesses — O2C and exploration (E&P) — still account for 45-50 per cent of RIL’s consolidated EBITDA.
Spanning expansive refining and petrochemicals business, the O2C business performance can be volatile depending on trends in crude oil prices and refining margins. In times of high crude oil prices, higher refining and petchem margins have helped the overall profitability. |
18797 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
Besides apparel, grocery and electronics, the company, through acquisitions, has gained foothold in newer segments such as pharmacy (Netmeds), fashion (Zivame, Clovia) and D2C (Urban ladder), which will drive growth in the medium term.
With dominance in digital and retail ecosystem and scope to enhance synergies across these, Reliance is strategically positioned to garner a good share of the consumer spending which will happen over the next decades with its consumer facing businesses.
O2C & E&P
RIL’s traditional businesses — O2C and exploration (E&P) — still account for 45-50 per cent of RIL’s consolidated EBITDA.
Spanning expansive refining and petrochemicals business, the O2C business performance can be volatile depending on trends in crude oil prices and refining margins. In times of high crude oil prices, higher refining and petchem margins have helped the overall profitability. Similarly, there have been times when, due to falling crude prices, refining and petchem cracker have been on a falling spree, thereby adding to the pressure on the overall profit performance. |
18798 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
With dominance in digital and retail ecosystem and scope to enhance synergies across these, Reliance is strategically positioned to garner a good share of the consumer spending which will happen over the next decades with its consumer facing businesses.
O2C & E&P
RIL’s traditional businesses — O2C and exploration (E&P) — still account for 45-50 per cent of RIL’s consolidated EBITDA.
Spanning expansive refining and petrochemicals business, the O2C business performance can be volatile depending on trends in crude oil prices and refining margins. In times of high crude oil prices, higher refining and petchem margins have helped the overall profitability. Similarly, there have been times when, due to falling crude prices, refining and petchem cracker have been on a falling spree, thereby adding to the pressure on the overall profit performance. Reliance’s O2C business has best-in-class margins and may not be comparable to Indian refiners, given the scale of operations, efficiencies and export focus. |
18799 | Reliance Industries: With the stock having underperformed Nifty 50 in last three years, is it time to buy?
O2C & E&P
RIL’s traditional businesses — O2C and exploration (E&P) — still account for 45-50 per cent of RIL’s consolidated EBITDA.
Spanning expansive refining and petrochemicals business, the O2C business performance can be volatile depending on trends in crude oil prices and refining margins. In times of high crude oil prices, higher refining and petchem margins have helped the overall profitability. Similarly, there have been times when, due to falling crude prices, refining and petchem cracker have been on a falling spree, thereby adding to the pressure on the overall profit performance. Reliance’s O2C business has best-in-class margins and may not be comparable to Indian refiners, given the scale of operations, efficiencies and export focus.
Overall, while it remains a significant part of the company’s business, it will not get the same high valuation like RIL’s consumer facing businesses. |
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