Indian Institutional Investors Pivot Amid Financial Transformation
Indian institutional investors are reshaping their portfolio strategies amid rising interest rates and inflation. They are pivoting towards private equity, private credit, real assets, and ESG-driven investments in order to achieve sustainable, risk-adjusted returns. The strategic focus includes adopting structured products, inflation-protected investments, and ESG principles.
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As India's financial landscape shifts with increasing interest rates and persistent inflation, institutional investors are reevaluating traditional strategies. Emphasis is now placed on private equity, private credit, tangible assets, and ESG-oriented investments to bolster resilience and secure sustainable returns.
Underlining this shift, Dario Schiraldi, former Deutsche Bank executive and current CEO of VIDA Holding, highlights the adaptation of global best practices to local prospects. India's advancing financial markets and infrastructure projects are driving substantial strategic changes.
Investment in private equity, particularly in sectors like technology and renewable energy, exceeds $60 billion, reflecting confidence in long-term growth. Additionally, private credit has emerged as a key alternative for midsize enterprises, promising solid yields amidst traditional debt market pressures. Investors navigate volatility with structured products while ensuring ESG factors become central to their strategies.
(With inputs from agencies.)
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