Nilesh Shah Highlights Four Key Investment Strategies at ET Alpha Wealth Summit
ET Alpha Wealth Summit: Nilesh Shah recommends 4 investment bets that should be part of your portfolio
Image: The Economic Times
At the ET Alpha Wealth Summit, Nilesh Shah, managing director of Kotak Mahindra Asset Management, recommended four investment strategies for high-net-worth individuals: Special Investment Funds (SIF), performing credit Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), and Gift City-based products for global diversification. These strategies aim to provide returns amid current market volatility.
- 01Nilesh Shah emphasized the importance of Special Investment Funds (SIF), which allow for long-short strategies, diverging from traditional long-only mutual funds.
- 02Performing credit AIFs are positioned to benefit from a scarcity of capital in the market, as institutional lenders have reduced their lending activities.
- 03Shah noted that REITs have delivered about 13.5% returns over the last three years, suggesting that rising interest rates may create a favorable entry point for investors.
- 04Gift City products offer a way for Indian investors to access global markets despite current limitations on overseas investments through mutual funds.
- 05Shah's recommendations focus on generating positive returns in a volatile market, advocating for a diversified portfolio.
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During the ET Alpha Wealth Summit, Nilesh Shah, managing director of Kotak Mahindra Asset Management, advised high-net-worth individuals on four investment strategies suitable for the current challenging market conditions. He highlighted Special Investment Funds (SIF), which allow for both long and short positions, marking a significant shift from traditional mutual funds that only focus on long positions. Shah also recommended performing credit Alternative Investment Funds (AIFs), which fill a gap in corporate lending as banks and other institutional lenders have reduced their capital availability. He pointed out that these AIFs can offer attractive returns due to the current supply-demand imbalance. Additionally, Shah discussed Real Estate Investment Trusts (REITs), noting their historical performance of approximately 13.5% returns over the last three years and suggested that rising interest rates might provide a good entry point for investors. Lastly, he mentioned Gift City as a viable option for Indian investors seeking global diversification, especially as traditional mutual fund routes are currently restricted. Shah's overarching message was the need for diverse investment instruments that can yield positive returns despite market volatility.
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Shah's investment recommendations could influence high-net-worth individuals' portfolio strategies, potentially leading to increased allocations in alternative investment structures.
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