Over the past few years, India's investment landscape has seen a considerable shift. It has been looking for new investment alternatives with better risk-reward. Some of these alternative investment options in India can offer high returns with low volatility and help diversify an investment portfolio.
Alternative investments like private equity, venture capital, and various debt instruments are India's fastest-growing (24% CAGR) segment, representing 12% of India's AUM. According to a report by 360 One, alternatives could constitute 20% of India's total AUM by 2026.
Conventionally, investing in such options was a preserve of big institutional investors. This is changing, and learning about such investments is more important than ever.
This article gives an overview of various investment alternatives. You will also learn about the latest trends in this industry.
SDIs are created by pooling several underlying assets into a listed fixed-income security. The underlying assets can be loans, lease agreements, invoices, etc.
It is an emerging alternative fixed-income opportunity in India for retail investors.
On Grip Invest, investors have many options based on this model, for example, LeaseX, LoanX, BondX, and InvoiceX. The main USP of these products is that they offer significantly higher returns than other similarly credit-rated fixed-income products.
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Benefits Of SDIs
Limitations Of SDIs
Commercial real estate has always been popular among investors. Due to the significant investment amount, it was traditionally considered the domain of high-net-worth individuals (HNIs). However, fractional ownership in the CRE space makes low-ticket-size investments accessible to individual investors.
Benefits Of CRE Investment
Limitations Of CRE Investment
India has the world’s 3rd largest ecosystem for startups. The country has over 1,12,718 DPIIT-recognized startups across 763 districts.
The thriving startup ecosystem in India has driven the expansion of venture capital (VC) and private equity (PE) investments. VC and PE funds extend financial support to emerging companies in their early stages. They also support those startups experiencing rapid growth in exchange for ownership shares.
Benefits Of Investing In PE/VC Funds
Limitations Of Investing In PE/VC Funds
P2P lending involves facilitating direct connections between borrowers and lenders via online platforms. This lending model allows individuals and small businesses to get easy loans. They do not need to rely on conventional financial intermediaries.
Benefits Of P2P Lending
Limitations Of P2P Lending
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P2P Lending Vs LoanX: Which Option Is Best For You?
In India, regulations around cryptocurrencies are still evolving. In the current scenario, they remain unregulated and are not recognised as legal tender. Therefore, individuals must exercise caution when dealing with digital currencies.
This asset class has seen its share of ups and downs. According to Forbes, Bitcoin returned more than 230% during the ten years ending in March 2021. However, it dropped about 76% in a year from its peak of $68,000 in November 2021 to $16,000 in November 2022.
Benefits Of Investing In Cryptocurrency
Limitations Of Investing In Cryptocurrency
The alternative investment options in India are growing fast. As a result, it presents savvy investors with massive investment opportunities.
There are many alternatives to non-market-linked investments to consider. The best choice depends on your investment strategy and risk tolerance level. Explore Grip Invest to check out high-yielding fixed-income alternative investments.
1. Why should an investor invest in alternatives?
Alternative investments like securitised debt instruments, fractional commercial real estate, etc., can improve a portfolio's risk and return profile and enhance total return through access to a broader universe of investments and strategies.
2. What are the risks of investing in alternative investments?
Alternative investments have risks and challenges, including illiquidity, complexity, and non-regulated asset classes like cryptocurrencies.
As with any investment, it is essential to carefully assess your risk tolerance, conduct thorough research, and seek professional advice before venturing into alternative investments.
3. Is there a safer alternative to P2P lending?
Yes. LoanX is an investment-grade and regulated investment instrument listed on NSE/BSE, offering 12-14% returns. It provides a simplified way to earn predictable fixed income from short-term investments, offering access to new and untapped opportunities while ensuring the safety of your investment.
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Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in
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