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Ultra-Rich Investors Shift Focus Beyond Equities: Where Are They Investing Now?
M
Moneycontrol•21-09-2026, 08:52
Ultra-Rich Investors Shift Focus Beyond Equities: Where Are They Investing Now?
- •Indian ultra-rich investors are moving beyond traditional equity mutual funds and listed stocks due to muted returns, seeking higher alpha and diversification.
- •Private markets, Alternative Investment Funds (AIFs), and overseas assets are increasingly popular, complementing mutual funds which remain a core portfolio component.
- •AIF commitments in India surged by 25.6% from March 2025 to March 2026, with Category III AIFs showing the fastest growth at 36.9%.
- •Direct investments and private equity allow investors to back companies earlier in their growth cycle, potentially yielding significant returns, as exemplified by Getfive Funds' 52% annual returns.
- •Private credit offers opportunities to lend to businesses with funding needs exceeding traditional bank capacities, while overseas investing provides geographical diversification, with LRS investment flows significantly increasing.
Key Questions Answered
Due to muted returns in Indian equities, wealthy investors are shifting toward private markets, alternative investment funds (AIFs), private equity, private credit, and overseas assets for alpha generation and diversification.
Indian AIF commitments increased by 25.6% from Rs 13.49 lakh crore in March 2025 to Rs 16.94 lakh crore in March 2026, while total investments grew by 25.7% to reach Rs 6.76 lakh crore over the same period.
Indian HNIs and ultra-HNIs are using GIFT City as a key route to gain exposure to global and overseas assets, notably through Category III AIF structures registered within the hub.
