When discussing a ‘safe’ investment, most Indians often turn to fixed deposits (FDs). The reasons are pretty simple. Fixed deposits offer security and negligible risk.
While FDs offer stability, their returns might not be the best. Sometimes, FD returns don't even beat inflation. That’s where people look for alternatives. And why not? It is wise to re-evaluate your investment strategy to earn better returns.
In this blog, we will delve into different alternatives to FD that strike a risk-reward balance!
A corporate bond is a financial instrument that serves as a loan to corporations by investors. These funds meet the company’s business requirements, ranging from a plant acquisition to expansion. In return, investors are paid fixed returns for predetermined tenure.
Advantages Of Corporate Bonds
Limitations Of Corporate Bonds
A mutual fund is an investment company that pools money from many investors to invest in stocks, bonds, and other investment options. A professional fund manager manages it. The AUM of the Indian mutual fund industry has witnessed a 5-fold increase in the past decade.
Advantages Of Mutual Funds
Limitations Of Mutual Funds
SDIs are formed by pooling several underlying assets into an interest-bearing security. The underlying assets can be loans, lease agreements, invoices, etc. It is an emerging alternative fixed-income opportunity in India for retail investors. Grip Invest offers a variety of SDIs like BondX, LeaseX, LoanX, and InvoiceX.
Advantages Of SDIs
Limitations Of SDIs
Default Risk- There is a risk of default on payments by the originator.
Fractional CRE investment allows investors to own a part of the commercial property and receive fixed returns in proportion to their investment. These investments are usually made in Grade A properties like office spaces, shopping malls, etc.
Advantages Of Fractional CRE
Limitations Of Fractional CRE
PPF is a government-backed long-term investment option for risk-averse investors to earn fixed interest rates decided every quarter by the Finance Ministry. The minimum tenure of a PPF account is 15 years, extendable in blocks for five years after that.
Advantages Of PPF
Limitations Of PPF
In the constantly evolving economic landscape, investing only in fixed deposits is insufficient to beat inflation and build wealth. Therefore, exploring higher-paying, predictable alternatives to fixed deposits is necessary. Also, an investor should diversify in various investment avenues like FDs, corporate bonds, SDIs, fractional real estate, PPF, etc, while building their investment portfolio.
At Grip Invest, investors can explore new-age alternative fixed-income options (SDIs and corporate bonds). These curated, listed, and credit-rated options are designed to fetch better risk-adjusted returns.
1. What is an expense ratio?
It is the fees charged for maintenance by mutual funds. This number depends on the size of the fund.
2. Can investors withdraw investment in SDIs before maturity?
SDIs are tradable instruments in the secondary market and can be traded before maturity. However, liquidity may be an issue.
3. Can I invest in corporate bonds through the exchange?
Yes! With RFQ integration on OBPPs like Grip Invest, you can easily place an order via exchange.
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Disclaimer - Investments in debt securities are subject to risks. 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 Invest”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip Invest 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 Invest does not guarantee or assure any return on investments and accepts no liability for the consequences of any actions taken based on the information provided. For more details, please visit https://www.gripinvest.in/.
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