Even while conventional stocks are still a crucial component of portfolios, diversification into high-growth industries and private credit is probably here to stay.
High net worth people and ultra-rich investors are progressively shifting their cash into alternate routes, such as private credit and developing industries, while conventional stocks have had a lull in the previous year. During a conversation with N Mahalakshmi for the most recent Diwali Blockbuster edition of The Wealth Formula, leading wealth managers pointed out a discernible change in smart money investing habits.
According to Rajesh Saluja, co-founder, CEO, and MD of ASK Private Wealth, there is a lot of interest in new-age industries. He emphasized that these sectors are becoming popular destinations for capital that is under-allocated in secondary markets, saying, “Smart money is actually flowing into new sectors: private credit, data centers, blockchain, and military.”
According to Saluja, the trend represents a deliberate reallocation to industries with distinctive development prospects rather than a flight from stocks. In addition to being complementary to conventional holdings, investors are searching for opportunities that will capitalize on structural changes in the economy and the uptake of new technologies.
The change is a reflection of high-net-worth investors’ increasing knowledge as they look for exposures outside of listed stocks to improve diversification. Wealth managers stressed the need of being selective in these areas since private credit and technology-driven investments have more complexity and comparatively less data.
This shift to alternate industries is consistent with larger patterns in the private wealth landscape of India, where investors are progressively distributing their holdings across overseas markets, private market possibilities, domestic stocks, and real estate. Saluja emphasizes the changing strategy of smart money in risk management and potential gain optimization, saying that the emphasis is still on strategic deployment rather than pursuing short-term profits.
The experts said that while conventional stocks are still a crucial component of portfolios, diversification into high-growth industries and private credit is probably going to continue, showing a sophisticated understanding of potential future wealth generating phases.