Finance1 min read

India’s rich pivot to real estate after stock returns falter

By · Published by Everything Blog

In short

Slower equity momentum, highlighted by the Nifty 50 returning only 7% over two years compared to the S&P 500's 29%, has accelerated interest in income-generating physical assets. Local alternative funds are rolling out products targeting 12% to 15% annual returns to capture this demand. As a result, domestic family offices are now committing up to 45% of their total portfolios to private credit, venture capital, and real estate vehicles. Furthermore, specialized managers are completing major funding rounds and public listings to scale their real asset strategies.

Key points

  • Domestic high-net-worth investors are using real assets to establish reliable cash flow a…: Domestic high-net-worth investors are using real assets to establish reliable cash flow after equity yields lagged foreign markets.
  • Indian wealth strategies are diverging from global family offices that remain focused on…: Indian wealth strategies are diverging from global family offices that remain focused on public equities linked to the artificial intelligence boom.
  • Asset managers are capturing substantial allocations by offering target returns between 1…: Asset managers are capturing substantial allocations by offering target returns between 12% and 15% on real asset vehicles.

Sources checked by our analysis pipeline: 1

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…

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