From mint · Jocelyn Fernandes · · 1m 20s
Want stable returns? Experts say public and private markets offer better prospects
Investors should diversify between public and private markets during downturns, not choose one.
In brief
Investors should diversify between public and private markets during downturns, not choose one. Investors should diversify across public and private markets during downturns to avoid 'either/or' choices. Originally reported by mint.
Public and private markets strategies
Fund managers Renuka Ramnath and Nilesh Shah offered different takes on what investors should do during market downturns.
Ramnath on private market safety
Ramnath stressed private markets offer safety through active operational control during crises.
Ramnath's boardroom influence
As a private company board member, Ramnath retains control over cash usage and company strategy during downturns.
Ramnath's crisis management
Ramnath noted private equity requires intense crisis management to shield companies from internal and external events.
Shah on public market bargains
Shah argued public markets create wealth opportunities after asset bubbles burst due to distressed valuations.
Shah's public market strategy
Shah noted public market investors typically sell assets below fair value during market crashes.
Ramnath's private market access
Ramnath recommended scaling up private market exposure gradually over five to seven years for investors.
Diversification over either/or
Both experts agreed investors should diversify across asset classes, not treat public and private markets as an either/or choice.
Investor strategy conclusion
Investors should diversify between public and private markets during downturns to avoid 'either/or' choices.
The big picture
Investors should diversify across public and private markets during downturns to avoid 'either/or' choices.
