Different Types of Investment Options Available in India

One of the most noticeable trends of recent times among millennials and Gen Z is the growing appetite for expanding their investment portfolio. Alongside traditional investments, they are largely investing in high-risk investment profiles. 

With so many options available, it becomes difficult for investors to pick what is best for them. So, here is a list of traditional and new age investments that potential investors can pick and choose from. 

Asset leasing

This unique low-investment opportunity of equipment leasing will help tech-savvy investors benefit from monthly pay-outs. The investment model of co-leasing assets to companies for a set period at regular rental payment from businesses is highly rewarding.

For example, Everest Fleet is India's largest fleet management partner for Uber. With the growing demand for Ubers, the fleet needs to add cars every month. Instead of buying them outright, the company leases them. Everest fleet pays fixed rentals every month to investors across demographics who purchase and lease these cars and in turn, receives proportionate monthly returns. Your investment is unaffected by market stress. Not only do you diversify your portfolio but also receive passive income of up to 21% pre-tax IRR.  

Inventory Finance

This is another fixed-income and high-return investment opportunity. Earn pre-tax IRR of up to 12% from this asset-backed low-risk investment with a maturity of 1-13 months. You can start investing with a minimum amount of ?15,000. How does this work? Companies need inventory holdings of raw materials and finished goods for their production cycle as customer demand increases. Inventory finance raises money for buying inventory from investors. This helps companies to direct their funds in scaling their business while maintaining their inventory. Investors receive fixed income by helping these companies.

For example:

Consolidated Engineering Company (“CEC”) and Ugaoo invite investment opportunities for planters and accessories for Ugaoo. The maturity period is 4 months, with a projected return of annualised pre-tax yield of 12.1%.

Startup Equity

Startup equity is a growing opportunity for investors. You don't need a huge investment to be an angel investor. This equity-based financing lets you become a shareholder in a VC-backed startup in its early stages. So, Grip incorporates startups with promising and disruptive growth potentials supported by VC investors, through due diligence and by taking care of investment management. This is a high-risk, high-return investment with an initial capital of ?2 lacs to begin with.

Commercial Real Estate Investment

Investing in commercial real estate is a profitable, age-old, high investment practice. Until now, this investment was meant for high-ticket investors. However, with Grip you can own and invest in world-class commercial properties for just ?1 lac. These properties are pre-leased to MNCs or marquee Indian tenants for 5+ years. You can start receiving quarterly rental income proportionate to the investment amount. With time, as the property price appreciates, you can reap the rising profits when you exit. Your expected average yield is 10%. Co-investing with reputed investors means that you can buy and lease property worth ?50 crores at a small ticket size. 

Corporate Bonds

Private and public companies use debt funds from investors. However individual investors can[1] not always buy corporate bonds at launch and rely on secondary markets once the bond is listed. These are low-risk investments with periodic interest. But how do you invest in them? The common investor can get confused between the coupon and the actual yield related to the market price and term. When a buying decision is taken, remember market yield is inversely proportional to the coupon. If the market yield is more than the coupon, bond prices are discounted to face value and vice versa. Grip brings trusted A+ rated bonds from reliable agencies like CRISIL or ICRA. These bonds are backed by secured collateral offering 11% yield to maturity. They are listed in NSE/BSE and held in demat accounts of investors on exit.

To conclude…

It’s time to turn into a smart investor. We all want our money to grow but small risks are more prudent than big uncalculated ones. If you understand the market, you can invest in volatile investments. At the same time, diversify your investment with other types of investment options. Grip performs due diligence on its products. It is backed by an impressive success rate that should be convincing enough to put your trust in them. Join a community of high earners. Visit https://www.gripinvest.in/ for details.