Family Offices: Indian Family Offices AUM to Surge by 50% in 3 Years | Chennai News


Indian family offices AUM to jump by 50% in 3 years

Chennai: Alternative Investment Funds (AIFs) player Sundaram Alternate Assets (SAAL) has projected that the Assets under Management (AUM) of family offices in India will jump by 50% at $45 billion over the next three years.
Currently, about 300 family offices in India are estimated to have a cumulative AUM of $30 billion. These family offices manage wealth of ultra-high networth individuals (UHNWI) and their families, classified as those having networth of more than $30 million in investable assets.Globally, there are 10,500 family offices with a collective AUM of more than $6 trillion.
In a report released on Wednesday, the company said, Indian family offices predominantly allocate their financial assets to mutual funds. While investments in AIF will increase by 5% in the next three years, allocations in mutual funds, Portfolio Management Services (PMS), direct equity and gold will grow marginally by 1%. Investments in sectors such as fixed income and physical real estate will reduce by 8% and 3%, respectively during the same period, it added.
“We believe there is a shift happening away from conventional fixed income products like mutual funds (due to indexation benefits going away) to newer avenues such as asset allocation strategies, private credit and venture debt. On the real estate front, there is a sizeable investment happening through vehicles like AIFs, which offer options like residential, commercial, warehousing, credit instead of just direct investing,” said Vikaas M Sachdeva, managing director, Sundaram Alternates. Over the next five years, family offices are likely to invest in public markets such as technology, financial services, healthcare and manufacturing, he added.

We also published the following articles recently

AUM of Indian family offices to hit $45 billion over next three years
Sundaram Alternate Assets predicts a 50% jump in the assets managed by Indian family offices, reaching $45 billion over the next three years. Currently, 300 family offices manage $30 billion. A shift is observed from mutual funds to alternative investments like private credit and asset allocation strategies.
What have happened to funds allocated to buy e-buses in TN, Dhinakaran asks
AMMK general secretary T T V Dhinakaran has questioned the DMK government’s allocation of funds for electric buses, highlighting that not a single e-bus has been bought in the past three years despite budget promises. An RTI reply revealed that only 892 new buses were purchased, leading to calls for immediate action from trade unions and Dhinakaran alike.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *