Alpha Ideas 20-20 | Sunil Shah Thinks This Firm Can Help Investors Insulate Themselves From Equity Risks
A lifeguard watches from his tower as tourists swim in the Aegean Sea at Varkiza beach in Athens, Greece. Photographer: Loulou D’Aki/Bloomberg

Alpha Ideas 20-20 | Sunil Shah Thinks This Firm Can Help Investors Insulate Themselves From Equity Risks

Investors diversify to minimise risks, and with bad loans of state-run and private banks being the biggest risk in the market presently, products that give fixed rate of returns are advisable.

That’s according to Sunil J Shah, co-founder of Turtle Star Portfolio Managers, who chose India Grid Trust, an infrastructure investment trust, as his favoured bet.

India Grid, which owns inter-state power transmission assets in the nation, generates revenue from power transmission, he said at the Alpha Ideas 20-20 conference in Mumbai. It assures to pay investors Rs 12 as annual distribution per unit (which is taxable), resulting in a compounded yield of 13 percent for the next ten years, he said. Buying units of India Grid, according to Shah, will help investors cushion their portfolio from risks involved in equity markets.

Its timeline for assured distribution per unit of Rs 12 per unit has been extended by five years to 2029-30 following KKR & Co.’s investments in the trust, he said. The company, which is looking to add more transmission lines in its portfolio, has assets worth Rs 17,000 crore which they intend to increase it up to Rs 30,000 crore, Shah said.

Watch the full interview here:

Disclaimer: The commentary on BloombergQuint represents the view of external experts. Investors are advised to consult a certified financial advisor/planner when making any investments. No views shared on a BloombergQuint program or story or conversation should be construed as personal advice.

Quintillion Business Media Pvt. (BloombergQuint) is not responsible for any risk or loss that might occur as a result of using this information in any way, regardless of your interpretation of the advice. Sunil J Shah is a SEBI-registered portfolio management services provider.

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