We expect the markets to stabilise as earnings recover, says Atul Singh of LGT Wealth India

Atul Singh, CEO, LGT Wealth India talks about the shifts in investment strategies, the growing appeal of alternative investments, and the evolving landscape for global diversification.

Edited excerpts:

Can you start by telling us a bit about LGT Wealth India and your role there?

LGT is a global leader in private banking with a history that spans over 100 years. It is the largest family-owned private bank worldwide and ranks among the top six private banks in Asia. In India, we focus on catering to ultra-high-net-worth clients, managing nearly $3 billion in assets.

What are the current trends in the HNI and ultra-HNI investment space?

The key shift we are observing is an increased allocation to alternative investments. Private equity, venture capital, and real estate-linked assets are gaining significant popularity. Furthermore, families are diversifying globally, investing in dollar-based portfolios.

How has the interest in alternative investments evolved?

Over time, we've seen a gradual shift towards alternatives, with gold, private equity, and venture capital making up a significant portion of portfolios. Despite the growing interest, liquidity constraints mean there is still potential for growth in this space.

Global diversification seems to be gaining traction. How are families approaching this?

Many families are utilising the Liberalised Remittance Scheme (LRS) to explore global investments, including equities and fixed income. GIFT City, with its opportunities for dollar-based investments, has also gained attention. Our typical recommendation is for clients to start with 10% of their wealth in dollar-based assets.

How are HNIs managing risk amid market volatility?

Diversification remains key in managing risk. We focus on spreading investments across asset classes that are uncorrelated. Market-neutral products, in particular, offer a way to buffer volatility while still yielding returns.

What are your thoughts on interest rates and their impact on investments?

We expect interest rates to decrease in the next 12–18 months as inflation stabilizes. This should benefit fixed-income markets and other asset classes.

What's your advice on intergenerational wealth transfer?

Proper planning is crucial. A well-structured will is essential, and family trusts can offer flexibility in more complex situations, such as involving minors or international beneficiaries.

How do you view real estate as an asset class?

Domestic real estate is currently performing well, supported by business growth and stock market gains. International real estate, however, is more dependent on market dynamics and is not a primary focus for us.

What's your stance on structured products and alternative debt instruments?

We prefer performing credit, as it is backed by consistent cash flows rather than specific events. In India, private credit offers attractive yields with low risk when researched thoroughly.

Looking at 2025, what are your expectations for the markets?

While there is some softness in earnings, the long-term growth prospects of the Indian economy are strong. As earnings recover, we expect the markets to stabilize and attract both domestic and foreign investments.

Padmaja Choudhury is a freelance financial content writer. You can reach out to her at padmaja@padmajachoudhury.com.