Valuations in the small-cap segment of the Indian equity market are witnessing strong growth. The AUM (assets under management) of several small-cap funds have risen above Rs 20,000 to 30,000 crore, which is enormous given the size of the space and liquidity. This has raised concerns among high net-worth Individuals (HNIs). When it comes to adjusting assets, HNIs are no different in how they manage their portfolios strategically.
HNIs, due to their substantial wealth, require investment strategies that not only maximise returns but also minimise potential risks. With an adept approach and a judicious mix of investment options, HNIs can safeguard their wealth and simultaneously generate substantial returns. Let’s delve into three key strategies to usher a favourable wind for HNI investors.
To mitigate risk and maximise returns, HNIs may consider tweaking their portfolio. They can consider the following strategies accordingly:
Diversification: This involves laying out funds across various investment instruments and industries to minimise the impact of any source of risk. It also aids in minimising the overall impact of market volatility and earning resilient returns.
Mukesh Kochar,…
