ET Alpha Wealth Summit 2.0 | Why alternatives are becoming essential for wealth creation beyond stocks and bonds, says Rahul Jain
Nuvama Wealth Management’s Rahul Jain says alternative investments can diversify portfolios through private markets, AIFs, private credit, REITs and InvITs. He recommends evaluating risk before returns and taxes, while considering global equities and liquidity constraints when determining portfolio allocations.
Alternative investments are gaining importance as investors seek opportunities beyond traditional stocks and bonds, Rahul Jain, President & Head of Nuvama Wealth Management, stated during the ET Alpha Wealth Summit 2.0 in October 2026. Jain emphasized that alternatives offer access to emerging businesses, differentiated investment opportunities and potentially higher returns that may not be readily available through conventional listed markets.
Investors can access underlying equity and fixed-income opportunities through private markets, alternative investment funds (AIFs), private credit, special situations, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), Jain explained. These segments enable investors to tap into sectors like defense, engineering and artificial intelligence, where emerging companies may yet become significant players.
For those interested in startup and early-stage businesses, Jain suggested that private markets could provide limited opportunities not found in listed markets. AIFs can be preferable to direct startup investments due to the expertise of fund managers in evaluating risks, structuring investments and understanding shareholder rights in private-market deals.
However, Jain reminded investors to consider the risks associated with alternatives, such as limited liquidity and longer investment horizons. He suggested that a portion of the fixed-income portfolio, around 20-30%, could be allocated to private credit and special situations, depending on the investor's risk appetite.
Additionally, Jain pointed to REITs, InvITs and pre-REIT or pre-InvIT opportunities as avenues for diversification, offering exposure to commercial real estate and infrastructure assets. While some investments may require longer periods and limited liquidity, global diversification remains essential, but valuations should guide allocation decisions.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
