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3 Alternative Investment Options in India

By Finserv MARKETS - Nov 15,2021
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3 Alternative Investment Options in India

When it comes to building strategies about your money investments, it is only wise to look at all the options available to you. It is important for you to understand that to minimize losses and maximize your profits, you must diversify your investment portfolio.

There are a lot of traditional investment options available in our country. However, do comprehend and calculate the gains you may get from the alternative investments option in India as well.

So, let’s understand what these alternative investments are.

Alternative investments in 2021 include a wide range of non-traditional options for investment that include venture capital, gold, antiques trading, real estate, and so on. Alternative investment options do not include traditional assets like stocks, mutual funds, bonds, etc.

Top 3 Alternative Investment Options That May Be Ideal for You

Here are three options for you based on maximum gains, and in a descending order of funds you would need to invest in each one of them.

Venture Capital – If you have a good amount of capital to invest, it might be ideal for you to become a venture capitalist. You can put your money in promising start-up organizations and small businesses. You will be able to earn royalties and dividends from the companies you have invested in. You may also earn a buyout in case the company is sold at a later point in time.

However, you must acknowledge the fact that this particular investment option is associated with high risks. Your investment growth is directly proportional to the growth of the organization or business you invested in. Thus, it is important that to do a thorough research about the company where you wish to invest.

Real Estate – This might come as a surprise to you, but real estate falls under alternate investment options! You will need a substantial capital to purchase multiple real estate properties which you can later sell to maximize profits. Based on the economic conditions and location of the property, you can gain a good amount from the real estate business.

However, it is ideal to understand the area, the convenience it offers, the geography of the place, etc. before you invest in properties. The locality should easily attract customers so that you make great profits from your real estate business.

Antiques and Collectibles – You may buy and sell collectibles and antiques to make fantastic profits. Many people collect graphic novels, action-figures, antiques from an age-old era, coins, and so on that are extremely rare to find. Later, they put up some of the things up for auction and make tremendous gains.

Advantages and Disadvantages of Alternative Investments

Advantages:

  • Volatility is low
  • Highly diversified
  • Not linked to the market

Disadvantages:

  • Liquidity of funds can become an issue
  • Lack of clarity
  • Higher risks than traditional options

Are the Alternative Investment Options Safe?

Investments are mostly subject to market risks. It is difficult to find an investment option that provides high returns but comes with zero risk factors. Thus, it is very important to read these articles or speak with financial advisors for proper knowledge and guidance before you invest your hard-earned money.

Alternative options for investment can prove to be both safe and rewarding for you, provided you ensure you are investing in places that somewhat guarantee good returns. Market analysis and growth analysis, hence, become extremely important for reaping high returns.

Bottom Line

Alternative Investments are not dependent on the market, so the volatility of market does not really affect them when inflation hits. They are a great option when it comes to generating passive income.

Investments are essentially done to grow funds and diversify the current portfolio. Alternative Investments in India are totally capable of doing both. Thus, going for them can definitely mean going in the right direction – for you and your finances.

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