Report: Family office AUM in country to register 14% growth in 3 years

Family office assets under management and alternative investments in India will register growth of 14% and 5% respectively over the next 3 years. According to a report by Sundaram Alternatives, the AUM of mid- to large-sized family offices in the country will grow at a CAGR of 14% over the next three years, with a 1.5-fold increase during this period. A country-based family office indicates a shift from asset preservation to a growth-based outlook. India's family office is now shifting to alternative investments with annual growth of 5%, which is projected to reach 18% in three years. This trend is consistent with the global trend of family offices investing 50% of their assets in alternative investments. This shift signals diversification through startups and innovative ideas, an important investment strategy and active participation of family offices in the country's growth story. Most Indian family offices are turning to alternative investment funds for access to the private market and startups. Which is now becoming the tool of choice. AIFs here provide a diversified portfolio rather than a single investment. There will be a moderate increase in allocation to mutual funds, AIFs Apart from alternative investment funds, investment is also being seen in some other options. Mutual funds, PMS and gold are also likely to see moderate growth in allocations, the report has expressed. While there is a downward trend in investment in fixed income and real estate. While the flow of investment in startups will also remain steady as many family offices are now poised to take advantage of the opportunities in this sector.

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