Investing your hard-earned money for capital gains is always a tricky path to chart. You might even feel compelled to pick between two types of investor personas - Sassy Susan, who always seeks fast and prodigious returns, and then there is Sleepy Sally, who swears by traditional practices and settles for low returns. But if you play your cards right, you can balance your portfolio beyond the traditional options and earn stable returns for both short and long-term gains. Wondering how? This is where the new age investment options come into the picture…
With alternative investments, investors can go beyond stocks, bonds, market-linked instruments, and cash. Generally, taken in supplement to the traditional investment instruments, alternative investment options primarily include hedge funds, private capital, natural resources, real estate, and infrastructure.
Gone are the days of traditional 60/40 allocation to equities and bonds! With investor aspirations pivoting from capital preservation to wealth creation, it is no longer feasible to maintain a well-adjusted risk-reward ratio from traditional investments alone. These new-age alternative investment options help lower volatility, earn enhanced returns, and warrant better portfolio diversification.
So, are you ready to diversify your portfolio and earn non-market linked returns?
Alternative investment options were previously reserved for the domains of institutional and high-net-worth investors. However, in recent times, alternative investments have grown in popularity and are making their way into the portfolios of retail investors. There are many platforms that provide these new-age investment options, some of them are - Jiraaf, KredX, Better Invest, Dezerv, and Grip.
Grip offers a wide range of investment options across the risk-reward spectrum…
Leasing is traditionally an investment made by big industries like airlines, hotels, etc. Following the same principle and remodelling the concept, new-age online companies are open to leasing. An investor gets the opportunity to invest in any asset class like a vehicle, furniture, electronics, etc. Investors earn fixed monthly returns for a specified period by leasing these to a company.
The two-way benefit of leasing allows companies to use leased assets to scale faster, and small investors to enjoy fixed, non-market linked, monthly returns by investing only a small sum starting from ?10,000.
Another HNI investment CRE acquires a new investment model. While fragmented CRE investment is trending, the initial investment of ?25 lahks is still way too difficult for a young aspiring salaried investor. But a new alternative that reduces this sum to just ?1 lakh is imaginable. This is a high return, and low-risk investment as properties under SPVs perform due diligence at their end. Commercial properties across key Indian metropolitan areas are MNC tenants with locked lease tenure generating attractive returns.
Corporate bonds owing to their price size were meant for HNI investors. However, now there is an alternative. This debt security high-value instrument is broken down into small investing sizes. Following the model of crowdfunding and accumulating a group of investors, companies are finding it convenient to raise capital for bonds and investors are benefiting with greater returns than what they would get from FDs. Investors enjoy fixed monthly returns by way of interest payments from companies. Thus, it is a great source of fixed passive non-market linked alternative income.
With startups being the rage, who wouldn’t want to invest in one? For investing in startups, you need to be a VC or an angel investor, both of which require high investment. But the new investment model reduces the investment equity of ?1-10 crore to just ? 2 lakhs. Each startup is VC-backed so an investor is taking a calculated risk.
Long-term wealth building is facilitated by investing in startups since it gives a chance to invest in emerging businesses, specialised markets, and joint ventures with other angel investors. Investors grow with startups.
In this mode of alternative investment, companies invite investors to finance their inventory. Investors back these assets with finance and earn returns up to 12% pre-tax. While companies divert the money into growth, they pay investors non-market-linked returns at the end of a short investment period. The initial investments start from just ?10,000; investors can reinvest to build wealth.
Visit Grip to explore highly-vetted and curated investment options. Though investments are fully audited and verified by the Grip team, we advise each investor to verify at their end. For better insight visit Grip and we will help you understand these new-age investments better.