Wealth is all about knowing how to grow it and that’s what most high net worth individuals and ultra HNIs focus on. It’s not all leading a flamboyant and extravagant lifestyle with unaccounted expenses, as we all know unmonitored wealth will run out sooner or later, no matter how much you accumulate. Yet, with calculated strategies to increment your wealth, risk mitigation always becomes a challenge, especially with an unpredictable market.
However, on the bright side, money may not literally grow on trees, but it might as well if you know the right strategies to apply timely, and you too can make it happen! Especially with newer global concepts such as commercial property investment invading the current market, it is opening up plenty of opportunities for all. So, to help you out here are some top emerging HNI trends that look reassuring.
Increase in Stock Exposure with Caution and Moderation
The focus for HNIs right now isn’t on achieving spectacular gains in the stock market. It’s about maintaining a careful and measured stock exposure. And for that, the company’s health is one of the major factors to focus on. Invest in enterprises that have a long-term optimistic vision with high-quality equities that are prone to gains with a possible economic cycle shift. Opt for high-quality large-cap equities or cyclical stocks that come at acceptable prices.
With the global pandemic, exposing gaping holes in the economic enterprises, right now HNIS is taking a walk towards companies with stable sustainable development goals (SDGs). Companies that are able to withstand themselves in the face of almost any economic shock, are of course the promising ones. But how do you identify them? Look out for enterprises with strong Environment, Social, and Governance goals (ESG), which is a sign of steady value release to stockholders especially in the long run. For instance, the real estate industry performed quite well even in the face of the pandemic, which is why more and more HNIs are turning their focus to invest in commercial property, which no doubt looks promising.
The Growth of AIF
There has been a significant rise in the industrial growth in AUM in just the last year, by a 27%. And that is because HNIs are hiring private fund managers who in turn manage their portfolios through PMS or AIF and manage and monitor their overall wealth. AIF opens up for these individuals untapped unconventional opportunities like unlisted markets, venture capital funds, real estate high yield commercial property and so and so forth. For instance, although the regular trend is to invest in real estate, HNIs rather seem to turn to Real Estate Investment Trusts which seems to be the better option than direct investment.
Gold a Stable Evergreen Investment
Invest in Gold, is a tagline you’ll hear from almost all HNIs. And indeed even in 2022, the scenario hasn’t changed, meaning gold still remains one of the most sought-after assets. If you want to add stability along with your high-risk investments, Gold is one of the best options and will remain so for years to come. Gold retains its value, no matter the economic scenario. So in the face of inflation, one secure safeguard measure you can rely on is Gold, which will only either hold or increase but never really lose value.
Exchange-Traded Funds and Index Funds
The concept of ETFs and Index Funds isn’t certainly new, but only recently seems to have picked up the craze especially among millennials. Most HNIs and Ultra HNIs have turned their focus to ETFs and Index Funds for they seem to provide valuable advantages you wouldn’t want to miss out on.
Embracing Technology is the Only Way
If you are in tune with the market, you don’t really need to be taught the importance of technological advancements and how it has overpowered almost any and every market. Technology infused with agriculture, education, and other unrelated industries seem to be yielding fruitful results and HNIs are always out there scouting for opportunities in these emerging tech-based industries. AgriTech, PharmaTech, Fintech, EduTech are some of these rapidly growing sectors you’d want to get behind.
These are some of the top trending behaviors for HNIs and Ultra HNIs, however, remember your table of opportunities doesn’t end here. From REITs to philanthropic ventures, your options are endless, just remember to move wisely with caution, do your research and calculate your risks.
About the Author: Yield Asset
Yield Assets is one of the best commercial property investment companies that provides the best real estate investment platform. Investing in pre-leased commercial property is one of the best investments that one can rely upon.