ETMarkets NRI Talk | Alternatives can account for up to 20% of an NRI's India allocation: Shiv Gupta

As more NRIs look to diversify their India portfolios beyond traditional equities and fixed income, alternative investments are increasingly finding a place in long-term wealth creation strategies.From portfolio management services (PMS) and alternative investment funds (AIFs) to private credit, these asset classes offer the potential to enhance risk-adjusted returns, albeit with higher risk and lower liquidity.In an exclusive conversation with Kshitij Anand of ETMarkets for NRI Talk series, Shiv Gupta, Founder & CEO of Sanctum Wealth, explains why sophisticated investors can allocate 10–20% of their India portfolio to alternatives, how NRIs should think about asset allocation across equities, debt, gold and real estate, and why India should be viewed as a strategic component of a global portfolio rather than an emotional allocation.He also shares his views on FCNR(B) deposits, Indian bonds, tax planning, sector preferences and the biggest investment mistakes NRIs should avoid.

Edited Excerpts –Q) Has sentiment changed recently towards India, especially after the domestic market failed to generate substantial returns over the past two years?A) Investors have certainly become more discerning after two years of modest equity returns and rupee depreciation, especially when many international markets have delivered much stronger returns.