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Most alternative investments haven't really added valueShrikanth, Blue Ocean MCFO, Hyderabad

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Key Take-Aways
  • Stick with your investment policy document and have a financial discipline. Remember that you don't need to add more complexity to products in order to make money. High risk does not equal high return.

  • Investors should ask "do these products suit my risk appetite?" Whether it is HNI or a retail investor, the rules for investment stays the same. Asset allocation, fund selection and financial discipline is key.

  • Alternative investments have higher risk compared to listed products but many have not equivalent return to risk. Many are not aware of the huge credit risk that can eat away at principal.

  • PMS cannot replace mutual fund in the true sense as it cannot be customized. On the charges, taxation, profit sharing mode, it is not as transparent or regulated as MF.

  • Look at data over the long term (10-15 years and more) to see which product categories have done well and suit your risk appetite.

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