September 2022: India’s wealth management and investment landscape has witnessed remarkable growth in the past few years. From aspiring for the USD 5 trillion economy to decoding the innovative products and assets for wealth creation, a special summit series on the wealth industry trends – ‘HSBC India Investment Summit, in association with CNBCTV18.com’, explored the investment landscape both from a macro and micro perspective.
The three-part summit was recently held in Mumbai, Bengaluru and Delhi.
The International Wealth Management Ecosystem
The summit started in Mumbai, with Hitendra Dave, CEO, HSBC India, setting the tone by focusing on the potential of the global wealth management industry. In his keynote speech, he highlighted that “optimism, good balance sheets (household, corporate, bank, and sovereign), and flow of credit into industries, businesses, and individuals will be fueling the next round of growth in India.”
The summit then flowed into focused panel discussions on topics like Road to the US $5 Tn Economy: Impact on Wealth Creation and Finding Alpha through Alternate Investment Strategies.
Road to the US $5 Tn Economy: Impact on Wealth Creation
India’s race to reach the $5 trillion economy target and the fast-growth segments that offer new potential, were analyzed by prominent panelists, including Tushar Pradhan, CIO, HSBC AMC India and Nilesh Shah, Managing Director, Kotak Mahindra AMC. This topic was also deliberated in Bengaluru with industry experts like Taher Badshah, President & Chief Investment Officer, Invesco, Mutual Fund; Kalpen Parekh, Managing Director & CEO, DSP Mutual Fund; and Kailash Kulkarni, CEO, L&T Mutual Fund as speakers.
Taher Badshah, President & Chief Investment Officer, Invesco, Mutual Fund stated, “the last couple of years have set a new paradigm, which is quite dramatic. We have also seen a lot of new launches as you mentioned, it even preceded the pandemic as well but the only thing is that it got into little more momentum during the phase of the pandemic. I think all of it probably is here to stay for sure.”
The concluding edition of the summit in Delhi further delved into the topic, involving renowned panellists Ravi Menon, CEO, HSBC Asset Management, India; Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) and Anuj Mathur, MD & CEO, Canara HSBC Life Insurance Company.
Alternative Investment Funds (AIFs) for Wealth Creation
The second panel session in Mumbai ‘Finding The Alpha Through Alternate Investment Strategies’ had industry stalwarts like Ashish Somaiya, CEO, White Oak Capital; Navin Agarwal, CEO, Motilal Oswal AMC; and Anand Shah, Head of Portfolio Management Services (PMS) & Alternative Investment Funds (AIF), ICICI Prudential, who deliberated on how alternative investment products have become a lucrative option for growth, especially in Asia and other emerging economies.
Seasoned wealth experts like Aashish Somaiya, CEO, White Oak Capital; Anshul Saigal, Head and Portfolio Manager, Kotak Portfolio Management Services and Shahzad Madon, Head, Nippon India Alternate Investments discussed why AIFs are gaining popularity and the growing need for innovative offerings, which acts as a differentiator and a boutique style of managing risk and reward.
Anshul Saigal, Head and Portfolio Manager, Kotak Portfolio Management Services stated, “The alternative investment funds are providing innovation to the customers. If the customer wants diversification and asset allocation, then the vehicle to go to is AIF and PMS.”
India’s Growth Potential
The final edition in Delhi featured a keynote address by Pranjul Bhandari, Chief India Economist at HSBC Securities and Capital Markets, who focused on India’s macro-economic outlook. She said, “The new economy is very exciting and is leading growth, old economy is weaker and this is the story of growth right now. India’s likely growth at the eve of the pandemic was 6%, if we only bank on this new economy- start-ups and high-skill exports, then our GDP growth can rise from 6 to 6.5% in the next couple of years.” She further highlighted, “If we can have a way in which new economy spills over old economy, you know old school manufacturing, old school infrastructure, then we can actually raise growth quite a lot.”
Assessing India’s standpoint, Tushar Pradhan, CIO, HSBC AMC said, “The US $5 Tn figure, in my opinion, should put us at least somewhat at ease, when we take into account the growth potential of our economy, the extreme under-penetration of all goods and services within the economy thus far, and just the demographic story in terms of how it will hold up, if everything goes well.”
Smriti Mehra, CEO- Business News, CNBC-TV18, said, “There has been a striking change in the global wealth and investment sector in the last decade. Assisted by the global market, India is set to lead the worldwide growth of ultra-high net worth individuals. Keeping an eye on this rapid rise, this summit aims to focus on this new wave of wealth creators.”
To summarize, Asia is in the spotlight for wealth management growth and the stakes are high. A holistic approach to investing is the key for investors to achieve their ambition and goals. HSBC’s ecosystem gives the platform with access to unique opportunities backed by expertise and insights through their global network to realize these ambitions. To know more about HSBC Wealth Management Services, visit www.hsbc.co.in/investments.