India's alternative assets market to grow 5x to US$ 2 trillion (Rs. 1,69,76,000 crore) by 2034: Report
- IBEF
- December 18, 2024
India’s alternative assets market is expected to grow five-fold to US$ 2 trillion (Rs. 1,69,76,000 crore) by 2034, according to a report by Avendus Capital. The market currently manages US$ 400 billion (Rs. 33,95,200 crore) in assets, with growth driven by investor sophistication, portfolio diversification, and favourable regulations. The report highlights those alternative investments, including options beyond traditional stocks, bonds, and cash, outperform conventional investments, particularly among high-net-worth individuals (HNIs) and ultra-HNIs. This trend mirrors global patterns, where alternative assets grew from 10% to 20% of global assets under management (AUM) between 2005 and 2020.
The rise of alternative investments in India marks a significant shift in the country's investment landscape, supported by regulatory advancements and a growing base of sophisticated investors. As HNI and UHNI wealth is expected to double to US$ 2,000 billion (Rs. 1,69,76,000 crore) by 2027, the demand for alternatives is set to increase. The report suggests this will likely lead to consolidation and potential listings of alternative funds, which could see premium valuations due to their superior long-term returns. India’s share of Asia-Pacific private equity and venture capital investments increased to nearly 20% in 2023, up from 15% in 2018, reflecting the nation’s expanding role in the region's financial ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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