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Will people prefer alternate assets in India??

Created by : Jyoti Rath, Sr. Associate, Barclays  | 05 03 2010 12:08:16 +0000
Industry : Equity Research/AnalyticsFunctional Area : India(Markets)
Keywords : stocks share market equities normal assets regular assets altenate assets
Activity:  305 views;  last activity : 08 23 2010 07:49:35 +0000

The world of investment today extends far beyond equities and bonds. Although these alternative investments are still evolving in India, they are an option for those who are looking for hybrid features in an investment.

Alternative assets typically provide economic value that would not be found in a standard investment portfolio. They could be in the form of structured products, private equity funds, real estate funds, commodities or art funds. Also, investments in art, rare coins, rare stamps, fine wine, though not popular in India, are part of alternative assets.


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Alternative products are offered to clients who already have some experience with equities and bonds and are looking for a different flavour. Depending on a client's profile now they are being offered these alternate assets which is being very popular in other countries people.

So, what do you think, will people prefer investing in alternate assets in India??

  
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Top Argument
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Yes i think people will prefer these alternate assets which are more into real estate old coins, old stamps, and wine collection or into art which will be valued more as the year passes and only people who have had experience in equities and stocks earlier will be comfortable in investing in these alternate classes and will come good as time goes by but in India it is still at a nascent stage whereas elsewhere people are more interested in these alternate classes.
By Jyoti Rath, Sr. Associate, Barclays  05 03 2010 12:12:32 +0000
 
Top Argument
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THANKS SUJATHA. MANY PEOPLE MAKE INVESTMENTS ANTICIPATING APPRECIATION WITH AN EYE ON LIQUIDITY THAT TOO EASY LIQUIDITY.SELLING THE CONCEPT OF INVESTING IN ALTERNATE ASSETS WILL TAKE A VERY VERY LONG TIME IN OUR COUNTRY TO GAIN ACCEPTANCE.
By s.baalu , Consultant, XYZ LTD  05 04 2010 12:15:26 +0000
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Yes it will be taken up by we Indians. Why I say this is because a lot of changes are taking place which we all can see. There is a sea change in the investment habits of Indians. The traditional areas are there but the new ones are coming up and evolving also. Now we can see investment in sporting ventures as business ventures not as providing just the money for running of the sports. Likewise the ones suggested by you may not be in the habit of Indians right now but the time is not very far when we will be able to see investment in these areas becoming the habit of Indians.


By Aditya Sharma, Insurance Advisor/Analyst, LIC OF INDIA, ICICI LOMBARD  | 05 10 2010 15:33:21 +0000
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Am in favour of this alternate investment routes - it might take time, but its coming for sure. People will look for alternate investment avenues - wine, art, coins etc are all on their way to India - one needs to start keeping aside a small percentage of investible surplus towards this - goood returns but with a medium to long-term timeline
By Shankar Chelluri, Branch Manager/Regional Manager, Vaishnavi Corporate Communications P Ltd  | 05 05 2010 06:16:44 +0000
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Is n't TATA's venture to real estate for housing to the tune of 3-7 crores, going in line with what you are highlighting.This, may be coming soon & NRI's and others who hold dual passport may intend to invest. India may be a greener pasture for these people.
By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 05 04 2010 13:53:32 +0000
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It may take some time to pick up.  It will pick up once people start understanding the investment concept, ROI, how it works, etc.  We all know that Equity market is very volatile and we do not believe in putting all the eggs in the same basket.  Therefore, I definitely support this.
By Sanjeev Gupta, Head - Quality & Testing, C1 India  | 05 04 2010 10:26:10 +0000
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Indians may take a while so far as investments in vintage wines is concerned but as far as alternate investments are concerned Indians are already at it and ahead of many. 
By Ravindra Sharma, Managing Consultant, CHEF-India  | 05 04 2010 05:57:23 +0000
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In a developing economy, real estate is a rewarding option and in India many who haven’t even heard about shares take it seriously. Indians attach a lot of sentiments to owning a house and is the common Indian’s first investment. alternative investment as a whole is still in the nascent stage. But there is nothing to contemplate, when we are still having an underdeveloped equity and bond market. Alternative investments other than real estate, only HNIs who have tasted international flavours will be interested. Also, alternative investments usually require huge investments. For the art and antiques stuff we still don’t have a dependable market in India and I don’t think common people have enough risk appetite to accommodate high uncertainty in their value. Definitely  there is potential and, the presence of large number of hnis have attracted many laxury brands to India. But at present, it is yet to happen and the only considerable exception being real estate .
By Padmanabhan R, Articled / Audit assistant, Finance student  | 05 05 2010 16:54:44 +0000
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Difficult to say- its a very individualistic opinion and cannot be generalised.

However, people are now doubly careful with their money, so the market will throw up various kinds of data periodically.
By Jaya Ray, Manager, KyaZoonga.com  | 05 05 2010 08:45:21 +0000
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these thing has not reach to india in a big way. people still feel to invest in stocks or shares rather than coins / art. etc.


By puneet , Manager Admin  | 05 04 2010 17:13:51 +0000
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Not NOWWWWWWWWWW
By Raghvendra Tripathi, Area Executive, ITC Ltd,Bhopal  | 05 04 2010 06:12:22 +0000
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I dont think that people from India will prefer alternate assets, as because people of India are not interested in change. If they were then corruption, poverty, child labor and other such things would have been vanished from India. If citizens of India are satisfied from whatever assets they have and if they feel containment from it then they wont prefer alternate assets.
By Chandra shekhar, Technical Writer/Quality Assurance, CMMI 3 Software Company, Hyderabad  | 05 04 2010 05:45:56 +0000
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I completely agree with Mr. Kusari....in India its not the right time to invest in the alternate assets, may be people will invest in the realty things, but not into wine, art, old coins and accessories then old stamps and all....these things have gained importance in the west but not here in India, still it has a long way to  go people, at the moment people prefer the regular stocks and shares.
By Sujatha srivastava, Associate/Senior Associate, AT Kearney  | 05 04 2010 05:13:44 +0000
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Retail: Lack of Investment skills necessary for AI

Institutional: Lack of motivation (except for a very few funds. AI lack liquidity in countries like India, which is the foremost requirement for Inst. Investors.)
By Sunny Sabharwal, Manager, Altius Finserv Pvt Ltd  | 05 04 2010 05:10:17 +0000
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Till the money market stabilizes and made transparent, free fom frauds and insider-tradings etc.  alternates  may not catch fancy to the retail investors.

Such investments will be secondary in nature and markets for resale of such items would have to grow up. Till then, we may watch the happennings.

However, alternate investments like commodities, derevatives, metal and Futures are getting momentum. Others like investments in Arts, Rare Coins and stamps.Fine Wine and Whiskey etc, may  take some time.
By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  | 05 03 2010 18:28:50 +0000
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