Rise of an Alternative Investments...
Before going to alternative investments. First of all, lets see what are the traditional and mid era investment options.
What are the Traditional investment options?
This are the investment option where investors get high security
but of course low return on investment i.e. ROI but still people choose
this kind of options because they don’t even know about another options.
Investment options are as:
But as Era
change, people perspective towards risk, managing and investing money also changed.
So, that’s why after 2008 crisis people started to think about Equity and from 2014,
they started to invest in equity and mutual funds. In 2014 the total investment
was 3000 Crs and in 2024 it around 20000 Crs. That’s a huge V shape stat.
This is India’s
sad thing that if people get to know about one thing, they over exposed it. I mean
to say that now a days people are only investing in equity and mutual funds which
is also linked with equities.
So, the
only motive behind writing this blog is to aware peoples about more alternative
investments that are in market which also give better returns and also hedge
money against any crisis.
So, these are the alternate investments which you can see as
more options…
1.
REITs:
People
like to invest in real estate but they hold their hands because of capital they
don’t have. If any one wants to buy a property, they need to have a lot of
money to acquire rights of that property.
But
what about people who don’t have that much money. Here’s where REITs comes to
play its role are companies that pool investor money to purchase and manage
income-generating real estate, like shopping malls and office
buildings. Like mutual funds, they allow small investors to invest in real
estate with small sums, offering regular dividend income from rents and
potential capital appreciation.
2.
P2P Lending (Peer to Peer Lending):
P2P
lending connects individual borrowers with individual lenders (investors),
bypassing traditional financial institutions. P2P lending is also referred to
as "social lending" or "crowd lending." Obtaining better
interest rates is a common motivation for borrowers in this market. For
lenders, borrower defaults can be more common than for traditional lenders. Various
P2P lending platforms facilitate P2P lending, each with its own terms and
risk assessments.
3.
Crowdfunding:
Crowdfunding
is the use of small amounts of capital from a large number of individuals to
finance new business ventures. Depending on the type of crowdfunding, investors
either donate money altruistically or get rewards such as equity in the company
that raised the money.
4.
ETFs:
An
exchange-traded fund (ETF) is an investment fund that holds multiple underlying
assets. It can be bought and sold on an exchange, much like an individual
stock. ETFs can be structured to track anything from the price of a commodity
to a large and diverse collection of stocks—even specific investment
strategies.
5.
Commodities:
Commodities
are used to diversify a portfolio and protect against inflation. These
assets—ranging from agricultural products and metals to energy
resources—typically increase in value when inflation rises, providing
protection when most other investments struggle.
As prices for goods and services rises
during inflationary periods, so do the prices of the raw materials required to
produce them. This intrinsic connection to the real economy can make
commodities worthwhile for a well-balanced portfolio.
These are the Alternative investments
options which you can add to your portfolio as a hedge to stock and mutual fund
investment.
“NEVER PUT YOUR ALL EGGS IN ONE BASKET”.
THANK YOU…