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Best modern asset classes For 2024 Investing

Investing: By 2024, the investment landscape will have changed significantly, with India’s economic prospects outperforming those of the rest of the world. With government policies promoting stability and transparency, India is expected to grow at a rate of 6.5–7%, making it a desirable destination for foreign investment.

Given this encouraging economic environment, investors should consider a wider range of cutting-edge and contemporary assets in addition to more conventional safe havens like fixed deposits. A proactive strategy like this supports the country’s strong economic growth and creates opportunities for future stability and expansion in the investment sector.

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Revolution in Real Estate

The Indian real estate industry, which is growing into a major player in the world market, is putting more of an emphasis on investment options that are more widely available. The launch of SM REITs by SEBI, which expands the possibilities for commercial real estate investment, serves as a prime example of this change. As noted in Colliers’ 2024 Global Investment Outlook, India has made a noteworthy contribution to the $1.2 trillion global real estate investment market, with the Asia Pacific region, which includes India, accounting for 35% of this total.

This development is further supported by the growth patterns observed in particular real estate sectors. From January to September of 2023, investment inflows into India’s office sector increased by 1.6 times year over year to reach USD 2.9 billion. This growth is indicative of a strong and wide-ranging market expansion, as is the growth in the industrial and warehousing sectors.

Furthermore, the sector’s rapid expansion is demonstrated by the spike in new real estate launches in India’s top seven cities, which made up 41% of the market in the first quarter of 2023. This information, which comes from the “India Real Estate Report Q1 2023” published by Knight Frank India, emphasizes the upward trend in development activity.

These signs suggest that India’s real estate market will continue to grow strongly and steadily through 2024 and beyond, propelled by a variety of development projects and creative investment schemes.

Increased stock prices in India

A broader range of investors are now welcome to participate in India’s stock market. According to SEBI data through August 2023, the number of demat accounts increased to 12.7 crore, indicating a more welcoming investment climate. India emerged as the world leader in initial public offerings (IPOs) in 2023, especially in Q3, when the amount of money raised increased by an astounding 376% to $1,770 million. Despite inherent equity market risks like economic downturns and geopolitical events, investors are increasingly subscribing to initial public offerings (IPOs) in order to secure their initial gains. This flurry of activity suggests that there is a significant shift towards diverse investment portfolios.

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Growth through Alternative Investments

As India’s financial markets continue to grow and mature, investors are adding alternative investments to their portfolios to diversify their holdings. Startups, the natural resources industry, and cryptocurrencies—especially Bitcoin, which has been rising since November 2022—all demonstrate the growing desire for a wider range of investment options than just conventional stocks and bonds. Global funds are being drawn to India by initiatives like “Make in India,” and public investment is becoming more accessible thanks to regulatory changes. Innovative financing strategies, like loans convertible into shares, are becoming more popular, and the expansion of the alternative investment funds industry offers investors additional investment options. More people are looking into these non-traditional investment options thanks to developments in financial technology and strict investment regulations.

Adopt a balanced approach when strategizing investments.

In the ever-evolving world of investments, moderation is crucial. The fundamental component of this strategy is utilizing the dynamic equities market in conjunction with the growth potential of real estate, particularly through novel options such as SM REITs. This combination is improved by adding alternative investments, which guarantee a well-rounded portfolio that optimizes returns while skillfully controlling risks.

The Indian investment landscape is full of opportunities as we move into 2024, from the expanding real estate industry to the easily accessible equities market and the varied realm of alternative investments. Investors hoping to profit from India’s economic expansion and the shift in global investment patterns will need to comprehend and strategically utilize these options.

Read also: REIT Investing: A Complete Guidance on real estate investment trust

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