Alternative Investment Portfolio Update – May 25

India’s economy grew by 7.4% in Q4 FY25, but this marked a slowdown compared to 8.4% in the same quarter of FY24. For the full year, GDP growth was 6.5%, down from 9.2% last year. Despite this, India overtook Japan to become the world’s 4th largest economy, valued at USD 4 trillion. Factors behind the slowdown include the high base effect, global uncertainties, and domestic inflation, even as government spending and agriculture supported growth.

While the US and China are playing a tug of war on the tariff front, the European market performed well, helped by easing inflation.

Edelweiss Asset Management Limited (AMC) has introduced a new brand identity, Altiva SIF, to represent its Specialised Investment Funds (SIFs) business. The move positions Edelweiss AMC among the early entrants into the emerging SIF space.

The Altiva SIF platform aims to provide diversified investment solutions across equity, hybrid, and fixed income categories, addressing the evolving needs of investors seeking alternatives beyond traditional mutual funds.

Specialized Investment Fund will fill the gap between traditional mutual funds and AIFs that generally require a minimum of 1 Cr to invest.

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Alternative Investments, Defaults, and Delays

We have created a table to make it easy for everyone to track the latest status of ongoing delays and delays on various platforms and the current updates around them.

Currently, below are the key new updates on the various delays across Alternative Investment platforms.

• Tapinvest Gensol Delay
• Recent Covenant Breaches

Tapinvest Gensol Delay

Some recent bond covenant breaches are

• Sammunati
• Spandana Spoorthy
• Moneyboxx
• Trucap
• Finkurve

Most of the breaches have been in either microfinance or unsecured lending. The primary reason for this breach is increased NPA. The NPA has gone up because of a decrease in economic activity in rural India, and another factor has been the aggressive deployment of loans to people with poor credit.

Alternative Investment Portfolio Updates

We are going to cover some  AIFs in the next few months. Most of these products are for investors who can invest INR 1 Cr in funds. However, some AIF CAT I allow lower investments of INR 5 lakh in selected opportunities. 2 recent products we are covering this month are

• Brew Pub AIF – CAT1 investment in a portfolio of microbreweries. The valuation would be revised in the first week of June. Minimum investment INR 5-10 Lakh.

• Ne0 Special Credit Opportunities Fund –This is a CAT II fund focused on high-yield debt opportunities in different sectors. They focus on cashflow-generating companies looking for last-mile financing. The first fund is currently at 23% IRR. Total INR 1 Cr min ticket (to be invested in tranches over a 1-1.5 year period)

If someone is interested, they can register or ping us, and we can share more details.

Explore AIF

Register to get details of unlisted bonds

Get Unlisted Bond Quotes

Short-Term Investments

•  There has been no change in  I2Ifunding (Referral code discount50@i2i) as it is already following direct borrower lending. The returns have been around 14% to date. Now they are focusing on only one category, i.e, Urban Clap Loans

 Equity Market

Pre-IPO Stocks

Last month, we highlighted that NSE was available at an INR 1550 price because of general volatility in the market. In less than 3 weeks, NSE is now trading at an INR 2200+ price in the secondary market.

The reason for this price rise is partly due to expectations of the NSE’s initial public offering (IPO), according to analysts. 

The exchange has a market valuation of ₹5.8 trillion, according to reports. Since September 2021, the stock’s price has surged by over 200 per cent. The surge in the market price of unlisted NSE shares is also attributed to demand by retail and high-net-worth individual investors ahead of the IPO

The company has also done extremely well.NSE’s total income surged 17% from a year ago to INR 19,177 crores in FY25. Of this, a whopping INR 17,141 crores came from its core operations. Now layer in the margins. NSE’s operating profit hit over INR 12,600 crores. That’s a 74% margin. The bottom line is INR 12,188 crore, which is a 47% jump year-on-year, with a net profit margin of about 60%. Return on equity (ROE) is also a blistering 45% in FY25, up from 37% in FY24.

 Listed Stocks

The Nifty 50 is again approaching the 25,000 level and has shown great strength from its February lows. Though the corporate earnings have not been that great, overall positivity around the rate cut cycle can drive the market further up.

How does single stock investing fare against investing in a diversified basket with leverage?

 We will explore this topic in our upcoming post. As an investor who has limited knowledge of stocks, leverage can be a better tool than picking microcaps to target higher returns

Option Trading

May has been positive with slight gains of 1.5%. The market was volatile, but this month premiums were high to make up for the risk of large movements of the index.

Would you all be interested in doing a quant course to learn trading? If someone is interested, do comment. We have been exploring some online courses and have shortlisted a few with quality training.

Quantinsti is also one of the top quant trading course providers in India.

Below is the video as part of the series on top traders.

Starters can explore tradetron as it requires a minimum learning curve and marketplace to copy or Bigul if they want to develop their own strategies.