Want stable returns? What experts say on public and private markets offering better prospects

Fund managers Renuka Ramnath and Nilesh Shah offered different takes on what investor should do during a market downturn — seek access to private markets or hunt for distressed valuations in the public markets.

Speaking at Kotak Private’s 3rd edition of ‘Take and Counter Take’, the ace investors discussed public and private market strategies during market downturns. While the Ramnath stressed on the safety of directly managing cash and costs as a board member in a private company; Shah noted the unique wealth creation opportunity created by public market investors selling assets below fair value. However, both agreed investors should diversify, rather than treat markets as an either-or choice.

Ramnath is Founder, MD and CEO of Multiples Alternate Asset Management, and Shah is MD of Kotak Mahindra Asset Management Company (AMC).

Private markets are investments not traded on public exchanges. These include private equity (PE), venture capital (VC), private debt, and hedge funds, according to a Linqto report. Investors can gain exposure directly by purchasing shares in private companies or indirectly through private equity funds, it added.

What should investors do when asset bubble bursts?

According to Oisharya Das, CEO of Kotak Private Banking, growth of private markets is giving India’s wealth creators a broader opportunity set, while making portfolio-allocation decisions more nuanced.