High net-worth individuals (HNIs) keep on navigating investment landscape for unique opportunities. In an interview with CNBC-TV18, Himadri Chatterjee, the Head of Advisory & Key Clients Group at 360 One Wealth, discussed the role mutual funds (MF) play in the portfolios of these investors.
Distinguished by their investable assets, heightened risk appetite, and exclusive access to investment avenues, these individuals carefully curate portfolios that mirror their financial stature.
One notable characteristic of HNI portfolios is their superior diversification.
They strategically leverage a range of assets to mitigate risks and maximise returns.
"Surprisingly, around 50% of HNI Mutual Fund investments are directed towards debt and hybrid funds, a stark contrast to the 15% allocation observed among retail investors. This emphasises the HNIs' inclination towards a well-balanced approach to wealth accumulation and preservation," Chatterjee told CNBC-TV18.
Unlike their retail counterparts, HNIs demonstrate a stronger affinity for gold and international funds too.
This signals diversification strategy beyond domestic markets.
In addition to traditional avenues, HNIs even allocate resources to performing credit, private equity, and real assets through Alternative Investment Funds (AIFs) and Listed Venture Funds (LVFs).
HNI portfolios tend to be better diversified, leveraging a range of assets to mitigate risks and maximise returns.
For more, watch the accompanying video
First Published: Feb 27, 2024 3:01 PM IST
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