While investing in equities, mutual funds, ETFs, commodities, and bonds adds to your investment spreadsheet, digital disruptions have brought some unique alternative investments (AIs) worth looking at. When market performance is uncertain, expanding your investment source makes immense sense.
Alternative investments are addressing large masses from the common and affluent segments enabling technology-based wealth creation. AIs are improvising traditional investment models with an innovative and disruptive approach creating conditions for continuous wealth generation.
Diversification is one of the key reasons for investing in alternative investments. For investors looking to attain their long-term financial objectives while reducing risk, this may be interesting. When you include alternative investments in a portfolio, you are including an asset class or investment approach that frequently shows different characteristics from stocks and bonds, especially under uncertain market conditions.
Additionally, alternative investments can increase portfolio returns. Although some alternative assets may seem complicated owing to their nontraditional models. An understanding of these models will help you uncover the potential of returns that are at par with their source models.
For example, investing in commercial real estate through fractional investment will bring healthy returns which are perhaps better and more certain than investing traditionally in this sector.
Earning healthy returns for your hard-earned money is the purpose of investment. People are yet to learn the full power of alternative investments and the lucrative returns they can bring for a common investor.
In simple terms, AI can include investing opportunities that have been thought out differently by new-age financing geniuses. Fragmenting products like inventory financing, asset leasing, commercial real estate, and startup equity are what you could call putting old wine in new bottles. In other words, they are alternatively designed for a wider reach.
Tailored to fit the pockets of ordinary investors, these investments start with small investment sizes, and are a mix of both short and long-term investments, low-risk, high rewards, and a must-have in every investor’s portfolio.
Alternative investments can be utilized to enhance the diversification of your portfolio and earn fixed returns, especially when the markets are not steady, some of these non-market linked returns can continue to bring good returns.
Wealth management has been redefined after the pandemic. Revamped dynamics of major asset classes following recent macroeconomic trends are creating alternative avenues for investments for retail investors. Indian CRE is anticipated to grow at almost 13% CAGR according to Square Yards, India’s largest integrated platform for Real Estate & Mortgages.
In the future, investors will not concentrate investments on any one instrument and will be willing to diversify. AIs generate a passive income that builds a considerable corpus in the long run.
Today, a new-age investor is well-read and will consider the many benefits offered by AIs. Hence, the coming decade will bring many welcoming opportunities through alternative investments for all investors.
Alternative investment platforms are making their presence digitally and investors can easily find them through the search engine. However, the model that we have been discussing is unique and brought by Grip. Investments in this platform are carefully imagined covering a range of investors in all ticket sizes. The founders have brought their years of experience in an investment practice that sets out to make ordinary Indian wealthy. An excellent way to earn and accumulate wealth is with these alternative approaches. Visit Grip to invest in assets that offer attractive risk-adjusted returns.