Edelweiss Wealth Management’s Two Bets For The Next Five Years
Edelweiss Wealth Management is betting on two segments in the next five years—consumer technology and residential real estate.
“Consumer tech in the unlisted space is where the startups exist,” Nitin Jain, managing director and chief executive officer at Edelweiss Wealth Management, said in an interview with BloombergQuint’s Niraj Shah. “In five years, these will become globally competitive, some of these may be valued at $8-10 billion and some may get listed.”
“As an investment bank, institutional equity house and as a wealth manager, Edelweiss wants to be the leader in the consumer tech space,” he said.
Residential real estate is another sector where Jain sees an upside. “It’s a great time to buy property. Asset prices are going to go up in the next five years,” he said. “People are still struggling to value the listed real estate companies as the valuation models are going through evolution. However, they shall derive a high value in the future.”
With inflation returning, cyclical stocks will gain momentum, according to Jain, and Infrastructure is one such sector. Evolution of infrastructure and real estate investment trusts may encourage companies to create two entities—a capital-heavy and a capability heavy firm, he said.
Real estate companies may also eventually follow a similar model in the future, causing these two segments to see a growth in valuations, Jain said.
Insurance companies will also emerge to be “great investments” as they are expected to compound at a growth rate of 14-15% over the next decade due to the sheer under-penetration of insurance industry, he said.
Jain is optimistic about Indian markets, saying this feels like 2003 to 2008. “We are likely to see a 15% growth in earnings over last year and expect a 30% growth next year,” he said. “We have not seen this type of growth momentum over the last 20 years in India.”
Watch the full interview here: