A report released by the Association of Investment Bankers (AIBI) of India shows that HNI investment has been diversifying across a variety of channels beyond traditions products such as FDs, bonds and gold.
Investment in private equity and venture capital funds has seen robust growth in the past two years as it continued to grow more than 40%. So far in 2019, the investment in this asset class reached Rs.38,278 crore compared to Rs.24,955 crore in 2018, the report said.
The report forecasts that by the end of 2019, the total PE/VC investment could be in the range of $48-50 billion. Both quarters of 2019 have recorded strong growth in deal activity compared to the corresponding quarters in 2018.
Moreover, it believes that PE investors may forge ahead with strong investments despite growth slowdown, tight liquidity and market sentiment adding to the prevailing uncertainty.
Real estate funds and Infrastructure Investment Funds (InvITs) saw the highest investment growth in 2019 as it grew 41% and 31% to Rs.17,708 crore and Rs.1,384 crore respectively. Structured products also witnessed strong investment as it saw an investment of Rs.43,086 crore in 2019 compared to Rs.38,541 crore in the previous year.
Further, the report said that PE investment space will see high activity in the coming time as investments in this segment are at the end of their investment cycles and are looking for exits.
|
Asset Class |
FY19 (crore) |
FY18 (crore) |
Y-o-Y change FY19 |
Y-o-Y change FY18 |
|
PE/VC Fund |
38,278 |
24,955 |
53.56% |
43.70% |
|
Real Estate Funds |
17,708 |
12,473 |
41.97% |
21.05% |
|
InvIT Fund |
1,384 |
1,052 |
31.57% |
- |
|
Hedge Funds |
10,398 |
8,811 |
17.92% |
38.49% |
|
Sovereign Gold Bond |
7,960 |
6,960 |
14.37% |
32.34% |
|
Infrastructure Funds |
1,290 |
1,147 |
12.47% |
38.19% |
|
Structured Products |
43,086 |
38,541 |
11.79% |
36.08% |
|
High Yield debt |
26,360 |
27,336 |
-3.57% |
26.60% |
|
Gold ETF |
2,661 |
2,798 |
-4.90% |
-5.57% |
|
Total |
1,49,118 |
1,24,073 |
20.19% |
33.47% |