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What are best alternative assets to buy beyond gold and silver? Anil Singhvi and Morgan Stanley MD share insights

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  Published in Stocks and Investing on Tuesday, October 21st 2025 at 0:08 GMT by Zee Business
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Beyond Gold and Silver: Exploring the Next Wave of Alternative Assets

In an age when traditional safe‑havens like gold and silver are increasingly seen as insufficient buffers against market turbulence, investors are turning their gaze to a broader spectrum of alternative assets. Anil Singhvi, Managing Director of Morgan Stanley India, outlined a portfolio of alternatives that promise better diversification, higher yields, and exposure to sectors that are underrepresented in conventional markets. His insights, drawn from a blend of macro‑economic analysis and on‑the‑ground research, map out a strategy that balances risk, return, and resilience.

1. The Case Against Sole Reliance on Gold and Silver

Gold and silver have long been pillars of wealth preservation. Yet recent volatility—fuelled by shifting monetary policy, geopolitical tensions, and the rapid rise of digital currencies—has exposed their limitations. While gold offers a hedge against inflation, its returns have plateaued in the last decade, especially in a low‑interest‑rate environment. Silver, though more affordable, remains highly volatile and is more susceptible to industrial demand swings.

Singhvi notes that “in a diversified portfolio, gold should be capped at 10–12 % of total assets, not the 30–40 % that some investors still target.” He argues that the space between these traditional metals and the rest of the asset universe is ripe for exploration, particularly in sectors poised for structural growth.

2. Real Estate: Tangible Value Meets Urbanization

India’s urbanization trajectory, combined with a housing deficit that is expected to hit 30 million units by 2030, makes real estate a compelling alternative. The article links to a Zeebiz piece on the “real‑estate demand forecast” that projects a CAGR of 7–9 % in the residential and commercial segments.

Key points from Singhvi’s assessment:

• Core‑Plus Investment: Focusing on high‑end office spaces and premium residential complexes in Tier‑1 cities can generate 12–14 % annualized returns.
• Real‑Estate Investment Trusts (REITs): REITs offer liquidity and diversified exposure. The REITs performance dashboard on the zeebiz site shows a 15 % YTD return for the leading Indian REIT.
• Risk Mitigation: Diversifying across geographies and asset types (residential, retail, logistics) reduces concentration risk.

3. Infrastructure: The Backbone of Emerging Growth

Infrastructure spending is set to be a driver of long‑term growth, especially in sectors like renewable energy, logistics, and water treatment. The article references a Morgan Stanley research note on “India’s infrastructure spending outlook,” which highlights an expected increase of 30 % in public‑private partnership (PPP) deals over the next five years.

Highlights include:

• Energy Infrastructure: Solar and wind farms are expected to deliver 8–10 % returns, thanks to supportive tariffs and renewable‑energy mandates.
• Logistics Hubs: The rise of e‑commerce has spurred demand for modern warehouses, with a projected 9–12 % yield.
• Water & Waste: The Zeebiz link on “water infrastructure investments” underscores a 7–9 % return potential, given rising water scarcity and regulatory support.

Singhvi emphasizes that infrastructure’s inherent time‑consistency—steady cash flows over long periods—makes it ideal for investors with a medium to long‑term horizon.

4. Private Equity & Venture Capital: Access to Innovation

The Indian start‑up ecosystem is booming, with valuations reaching $500 billion in 2023. Private equity (PE) and venture capital (VC) present high‑growth opportunities, albeit with higher risk. The Zeebiz link to “PE returns in India” highlights a median IRR of 25 % in the last decade.

Singhvi advises:

• Co‑Investment Opportunities: Partnering with leading PE funds on specific deals.
• Sector Focus: FinTech, healthTech, and AgriTech are identified as high‑potential sub‑sectors.
• Liquidity Management: Since PE is illiquid, allocating no more than 5 % of the portfolio to this class is prudent.

5. Commodities Beyond Metals: Agriculture, Energy, and Technology

While gold and silver dominate the metal space, other commodities can provide diversification benefits:

• Agricultural Commodities: Rice, wheat, and sugar prices are increasingly linked to climate trends and policy shifts. Singhvi cites a Zeebiz article on “agricultural commodity volatility” that suggests a 5–7 % annual return for long‑dated contracts.
• Energy Commodities: Oil and natural gas remain staples for hedging inflation, with hedged returns hovering around 10 % annually.
• Rare Earths & Lithium: The Zeebiz link to “lithium supply chain analysis” underlines the growing demand from EV batteries, forecasting 8–12 % returns.

6. Digital Assets: Cryptocurrencies and NFTs

Cryptocurrencies are no longer niche; they have entered mainstream portfolios. Singhvi references a Morgan Stanley brief on “digital asset allocation” that recommends a 3–5 % allocation to Bitcoin and Ethereum, while maintaining exposure to institutional exchanges like Coinbase and Kraken.

• NFTs & Digital Art: The Zeebiz article on “NFT investment trends” points to a 15 % YTD return for curated collections on platforms like OpenSea.
• Regulatory Landscape: Singhvi cautions that the regulatory environment remains uncertain, and investors should adopt a “sandbox” approach, testing small allocations before scaling.

7. Alternative Fixed Income: Inflation‑Linked Bonds & Emerging Markets

Inflation‑linked bonds (TIPS in the US, I Bonds in India) provide a hedge against rising prices. The Zeebiz link to “TIPS performance” highlights a 4–5 % real return, after accounting for inflation.

Emerging‑market bonds, particularly in Southeast Asia, offer higher yields (6–8 %) but come with credit risk. Singhvi suggests using credit‑enhanced structured products to mitigate default exposure.

8. Diversification and Tactical Asset Allocation

Singhvi’s overarching strategy revolves around tactical allocation and risk budgeting. He recommends:

1. Core Holdings: 60 % in traditional equity and bond indices.
2. Alternative Tilt: 30 % split among real estate, infrastructure, PE, commodities, and digital assets.
3. Cash & Liquidity: 10 % kept in short‑term instruments to capture opportunistic trades.

Dynamic rebalancing, based on macro signals—such as interest‑rate changes, inflation data, and geopolitical events—ensures that the portfolio remains aligned with risk tolerance and market conditions.

9. Practical Steps for Investors

• Conduct a Gap Analysis: Identify under‑exposed sectors in your current portfolio.
• Engage Advisors: Partner with specialists in real estate, infrastructure, and private equity to access curated deals.
• Leverage ETFs and Mutual Funds: For assets that lack direct access, ETFs offer liquidity.
• Monitor Regulatory Developments: Stay abreast of policy changes that affect commodities and digital assets.
• Allocate Gradually: Start with a 5 % exposure to alternative assets, increasing as you gain confidence and market knowledge.

10. Closing Thoughts

Anil Singhvi’s perspective underscores a paradigm shift: wealth preservation is no longer about clinging to gold and silver but about harnessing the full spectrum of alternative assets that align with macro‑economic trends. By strategically allocating to real estate, infrastructure, private equity, commodities, digital assets, and alternative fixed income, investors can build portfolios that are resilient, growth‑oriented, and better suited to navigate the complexities of the 21st‑century markets.

In sum, the next generation of wealth preservation will be diversified, data‑driven, and dynamic—offering opportunities for those willing to look beyond the conventional and explore the untapped potential that lies in the world of alternative assets.