Investment has always been a fascinating subject. It presents a chance to make money and broaden your financial horizons. However, the unpredictable market conditions and overall portfolio risk considerably threaten the possibilities of investment success.
As an investor, you would want your returns in double digits. Equities? It could be a way to higher returns, but it requires long-term investment and is prone to high market volatility. How about fixed-income options? The part with fixed income sounds convincing; however, the returns rarely cross the threshold of 8% with conventional fixed instruments. So, precisely what options do you have? Welcome to the world of alternative investments.
Alternative Investments comprise assets that are not a part of traditional investments. It includes any investment that goes above and beyond the conventional options (FDs, Stocks, Bonds, and Mutual Funds). It enables you to invest in non-conventional asset classes for portfolio diversification.
This article will explore the significance of investment and highlight two popular investments- Mutual Funds and Asset Leasing, and their features to help you make a worthwhile investment.
Investing involves purchasing assets or securities with the prime aim of generating income and capital appreciation.
Some reasons emphasising the importance of investment are:
A Mutual Fund is a company that pools money and manages it. Multiple investors come together to collect money to achieve a shared objective. The professional then invests the gathered capital in various financial assets.
A Mutual Fund is like professional management of your investments. It is a vehicle comprising bonds, stocks, or other securities overseen by a financial expert.
Investing in Mutual Funds can be a sensible decision given their features:
Everything is not shiny and bright all the time. You must keep certain factors in mind before you invest in Mutual Funds:
Leasing is a strategy where the asset's owner or lessor agrees to rent an asset. It involves the renting of movable or immovable assets for a fixed time. Asset Leasing is a contract between the lessor and the lessee.
The owner of the asset, the lessor, lends or leases it to the lessee or borrower at a particular cost for a specified duration. The lessee uses the asset and makes regular payments throughout the lease term to the lessor.
Grip offers LeaseX, a unique product that allows investors to lease different kinds of assets to different companies, all in one investment instrument. This makes it a unique investment product that combines the benefits of diversification, attractive returns, and an easy-to-understand investment structure.
Asset Leasing is a viable option for investment success. Some of its features include:
The investors should consider the following before investing:
Now you know the differences and working processes of Mutual Funds and Asset Leasing. Here comes the question: Which option will help you attain investment success?
There is no one-size-fits-all solution in investments, to be honest. However, considering some essential factors and aspects can make it more transparent for you to make informed choices.
The table below compares both options on multiple criteria.
Mutual Funds and Asset Leasing have their fair share of pros and cons. Ultimately, the choice depends on your investment goals, risk appetite, and investment horizon. Mutual funds allow you to access a diversified portfolio with limited capital. Meanwhile, Asset Leasing can provide a steady income stream through lease payments. Thus, it can be an attractive investment choice for investors looking for diversification and passive income. Are you interested in trying out the lucrative approach to earning fixed returns?
Grip provides investment opportunities in rated and regulatory-compliant lease finance with fixed returns (LeaseX by Grip).
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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 consider 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 the consequences of any actions taken based on the information provided. For more details, please visit https://www.gripinvest.in/.
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