Domestic brokerage K R Choksey in a note has highlighted investment opportunities in holding companies (holdcos). It has identified five such firms where it sees an upside potential between 30 per cent and 57 per cent.
The brokerage believes investors can invest in holdcos to diversify risk.
“Investment in holding companies is one of the most convenient route to achieve portfolio diversification goal, allowing for stable returns while diffusing the overall investor risk. Holding companies have interest in diversified industries and sectors, which react differently to economic cycles, limiting downside risk to investor capital,” says a note by K R Choksey.
Eid Parry