In an interview with MintGenie, Asheesh Chanda, Founder and CEO, Kristal.AI said India has been able to fair better in these challenging times and offers a more attractive proposition.
Edited excerpts:
US Fed is adamant about hiking rates to tame inflation, which strengthens the possibility of a recession. What should investors do considering all this?
Investors should systematically buy at dips and cost average. Waiting for entry points could result in substantial opportunity costs, however, for those who don't have time to track the market. It is better they go for market-neutral strategies. Alternative funds and life settlement funds can offer much-needed protection from volatility in these times.
What could be the impact of Fed tightening and the consequent macro challenges on India? How do you see India in comparison to other emerging markets?
India has been able to fair better in these challenging times. The balance sheet has also been largely stable despite the weakening rupee. When growth is slowing down in the far east, China is still to recover from the pandemic’s effect and with sub-par growth in Europe, the Indian market offers a more attractive proposition.
While rates are rising and global growth is faltering, what should be investors' preferences across asset classes, such as equities, bonds, ETFs, etc?
Market-neutral asset classes generally do well in volatile times. Also, taking positions in companies with large moats helps contain the impact of inflation on portfolio value.
What could be an ideal portfolio for this market? What advice would you like to give to new investors?
As per our algo, the model portfolio for an investor with a moderate risk profile would be Fixed Income = 60%, Equity = 25% and Commodities = 15% approximately.
It's a challenging time for the wealth management industry because of prevailing uncertainty. You have recently crossed the milestone of $1 billion in AUM. What is the new milestone and opportunity for Kristal.AI in the wealth management industry?
Kristal's next milestone after hitting the $1B mark is $10B in AUM. We will continue to invest in the growth of our primary geographies like SG, India and UAE. But will also explore expansion in east Asian economies like Indonesia. Also widening the product range is the second area of investment.
Our product offerings like Private Markets, Digital Family Office (DFO), Immigration Services, etc., have found a positive response from investors. DFO accounts for a 40% share of the AUM of Kristal.AI. Today we are the number one digital wealth manager in SG for the affluent segment, we intend to be number one in Asia in the next few years.
Disclaimer: The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.
