Rich investors in India are looking to juice up their portfolios with high-yielding assets, including real estate and logistics, after two years of lacklustre stock market returns.
At least six new vehicles launched this year are seeking to raise more than $1.25 billion for real estate and infrastructure assets, marking a resurgence after previously growing slowly. The trend contrasts with well-heeled investors across much of the world who have piled into stocks that gain exposure from the AI boom.
PAG-backed Nuvama Wealth Management Ltd., which oversees $39 billion in client assets, is one of the local companies leaning in. The Mumbai-based firm raised around $420 million for a commercial real estate fund in partnership with property consultancy Cushman & Wakefield Management and plans to launch more funds that invest in income-generating properties or infrastructure, typically with an eventual sale or listing, Ashish Kehair, chief executive officer, said.
“There is a shift toward private credit and cash-flow generating assets,” Kehair said, adding that these also include real estate investment trusts and investments in logistics and warehousing.
The move reflects a search for steadier returns after Indian equities lost momentum following years of gains. Despite a rally in recent weeks, the benchmark Nifty 50 index has given total returns of just 7% over the past two years versus 29% in the S&P 500 index.