Monday, June 17, 2024

MONEY MATTERS :Investment trends to watch out for in the year ahead

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Digitalisation has not only disrupted every aspect of the sector but has also aided in streamlining operations and enhancing coordination between processes. In this context, India’s wealth tech industry is booming owing to technological advancements, government intervention, and policy changes. According to the Research and Market, the Indian wealth tech market is expected to reach $63 billion by FY25.

This puts India in a solid position to lead the next generation of wealth tech innovations and drive the industry forward. Though as the sector was put to the test over the past two years, we witnessed swift actions by the central and state governments to curb the situation.

Trends to watch out

With the onset of the COVID-19 pandemic, signs of inflation, and escalation of the Russian-Ukraine war, we have witnessed havoc in every domain in the past few years. Thus, to focus on the growth trajectory, let’s look at the trends to watch out for this year.
Focus on bebt: In the future, private debt will rise more through customized deals rather than relying on high commercial rates.

This is a global trend, as there is a general aversion to spending a lot of money on services. On the broader investment front, economists predict low demand for private asset classes, with returns decreasing — this suggests a change in portfolios toward private capital and longer-term private markets. The general public’s attitude toward private equity is shifting. People are now looking at private equity, such as venture capitalists, to address financial flows. As a result, we may anticipate that this pattern will continue till 2023.

Wealth tech for everyone: Indians have largely detoured financial markets by investing in physical assets such as gold, real estate, and FDs. Apart from promoting digital payments, the pandemic drove more Indians to the capital markets. Thus, businesses that specialise in simplifying investments, such as mutual funds, stocks, peer-to-peer investing, and everything in between, are well-positioned to democratize access to wealth management services through AI-enabled tailored advisory services.

This will enable an entire generation to accumulate money and attain their financial goals more efficiently. As a result, there is a dire need for wealth tech for the organization to shield investors from being swayed away.

All thing considered!

In a nutshell, the wealthtech industry is here to stay because it provides unprecedented and priceless convenience in investing and managing assets. Therefore, the industry anticipates that the government will prioritize the expectation mentioned above, along with trends to relieve the stress of both lenders and borrowers in the upcoming Union budget of 2023 to advance financial inclusion for all.

(The writer, Gaurav Tiwari is the founding partner of Centricity WealthTech)

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