HNIs (High Net-worth Individuals) have long chosen conventional investment options, including direct equities, fixed deposits, bonds, and tangible assets like gold and real estate. The way HNIs invest their money has changed in recent years along with the financial landscape.
The investment environment is constantly improving despite unforeseen hurdles due to the numerous moving pieces and structural changes currently underway. As a result, new investment opportunities are opening up.
What is HNI Investor?
- The Non-Institutional Investor Category includes the High Net-Worth Individual category, which has a 15% reservation of IPO shares.
- An HNI is a shareholder with investable assets of more than Rs. 2 crores.
- HNIs must submit applications with a minimum investment of Rs. 2 lakhs.
- HNIs are not allowed to bid at the cut-off price. The highest offer price must be used to subscribe.
- Applicants may apply as HNI investors or retail investors, but not both.
What is HNI in the Stock Market?
Both the stock market and the real estate industry are experiencing unprecedented growth. The dynamism of interest rates creates chances for investors since gold prices have not changed significantly over the past 12 to 18 months. A high portfolio return after accounting for inflation is achieved by taking advantage of opportunities and using the appropriate asset allocation over the long term. The high net worth individuals (HNIs) and super HNIs are regaled as the investing class.
How do Hnis and Ultra HNIs Invest in India Out of the Several Investment Options Available?
For HNI investors in India, various new equity investment options have been developed over the years, in addition to common equities and mutual funds.
For instance, HNIs can now invest in sovereign gold bonds and gold exchange-traded funds (ETFs), gain exposure to real estate through real estate investment trusts (REITs) or real estate linked debentures, invest in infrastructure assets through invITs, and diversify their portfolios through the Liberalized Remittance Scheme (LRS) and rupee-denominated fund of funds.
Last but not least, the HNIs community is showing interest in concepts like pre-IPO investments, venture debt, private equity, and hedge funds.