Equity exposure increased, real estate marginally decreased: Kotak Wealth Management

MUMBAI: Super rich investors shifted towards equity markets and the attractiveness of real estate investments has waned somewhat over the past one year, according to a report by Kotak Wealth Management.

This is largely due to the improved outlook of returns from the Indian equity market. Though real estate has been a favoured investment class for ultra HNIs, there’s a trend towards decrease in exposure over the past 1-2 years which is expected to continue for some more time, largely due to a stagnating realty market.

Kotak Wealth Management believes increased attractiveness of equity markets also saw asset allocation moving to equity from debt.

Within equities, banking and infrastructure sectors have been the favourites of ultra HNIs during FY15, with as many as 55 per cent and 53 per cent preferring them for their equity investments. Majority of ultra HNI equity selection saw money being allocated to the mid-cap sector. Energy sector is the least favoured by ultra HNIs due to a fall in oil prices. Ultra HNIs expect equities to give returns of more than 20 per cent for a holding period of more than five years.

Despite the slowdown in real estate, these super rich are optimistic and a survey reveals that 68 per cent anticipate an improvement and have a positive outlook.according to a report by Kotak Wealth Management.

This is largely due to the improved outlook of returns from the Indian equity market. Though real estate has been a favoured investment class for ultra HNIs, there’s a trend towards decrease in exposure over the past 1-2 years which is expected to continue for some more time, largely due to a stagnating realty market.

Kotak Wealth Management believes increased attractiveness of equity markets also saw asset allocation moving to equity from debt.

Within equities, banking and infrastructure sectors have been the favourites of ultra HNIs during FY15, with as many as 55% and 53% preferring them for their equity investments. Majority of ultra HNI equity selection saw money being allocated to the mid-cap sector. Energy sector is the least favoured by ultra HNIs due to a fall in oil prices. Ultra HNIs expect equities to give returns of more than 20% for a holding period of more than five years.

Despite the slowdown in real estate, these super rich are optimistic and a survey reveals that 68% anticipate an improvement and have a positive outlook.