Page 2 - Client Associates News Today

Himanshu Kohli, Co-founder of Client Associates, discusses the evolving landscape for High Net Worth Individuals (HNIs) in 2024, emphasizing diversification through international real estate and the growing importance of ESG-compliant investments.

While large-cap private banks, NBFCs, and IT are looking relatively attractive in terms of valuation; industrial, PSUs, consumer, and capital goods are expensive as compared to their medium-term averages, the report further adds.

As we approach the Interim Budget 2024 or the Vote on Account, the Indian markets are expected to remain strong in 2024 aided by the reallocation of global liquidity towards equity, with the governments policy stance aligned with this momentum. The Indian market is well-positioned for continued growth, although it may remain volatile in the near term. Indias fiscal deficit and current account deficit are in line with goals. Indias economic indicators reveal sustained growth rates, making it an a...

The most significant gains before the budget were observed in 2021, with the Sensex and the Nifty having advanced about 21 percent as the economy emerged from the Covid aftermath.

Indias MSCI Emerging Markets index spiked in eight years, leaping from 7 percent to 17.1 percent. With the ongoing domestic institutional investments and potential steady FII participation, India could surpass a 20 percent weight in the MSCI EM Index by early 2024

While they earn hefty commissions on these products, investors benefit from the tax sops.

According to SEBI data, Rs 18,658 crore was collected through these emerging investment vehicles in the April-September period of 2023-24. This comprises Rs 12,753 crore through InvITs and the remaining Rs 5,905 crore via REITs.

This came following a fund collection of Rs 2,596 crore through listed Infrastructure Investment Trusts (InvITs) in the entire 2022-23, although the amount mopped up through listed Real Estate Investment Trusts (REITs) was nil, data with the Securities and Exchange Board of India (Sebi) showed.

Family offices, HNIs, market liquidity, and positive investor sentiment have increased interest in SME IPOs, with 139 companies raising Rs 3,540 crore in 2023.

Warren Buffetts quote about real estate holds true for millennials as well. Despite underperforming other investments, millennials are investing in real estate for regular income and rental yields. However, experts warn that real estate should not make up more than one-third of an investment portfolio, and equity-linked investments may offer better returns. Tax benefits and the option of Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (InvITs) can also be considered fo...