We live in an era where change is the only constant and investment world is no different. Economies worldwide are more connected than ever. An overwhelming range of financial products is available at the disposal of investors. Technological advancements are beyond belief and imagination of an ordinary person, and everything is available at just a click of a button. There is a need to adapt to this ever-evolving environment and adopt newer ways. Therefore, we bring you the best alternative investment options for modern day investors.
Amongst all the changes, one thing remains constant, and that is ‘expectation of good returns from investment’. The objective is to protect against any capital loss and achieve the best possible risk-adjusted returns.
We observe that few investment avenues have modernized so meaningfully that investors must explore newer methods. We have provided a comparison of traditional vs new ways of investing across major asset classes; the best alternative investment options for modern day investors:
Apart from above, there are a few other new-age investment options that are gaining popularity.
Do read my detailed article here on ELSS – All about Equity Linked Savings Scheme (ELSS) mutual funds.
Investment in start-up’s
People enjoy being entrepreneurs; if not, they like to join hands with entrepreneurs and start-up owners to buy a particular share (also called Equity Crowdfunding). Investors are expanding their portfolio by investing small to mid-size amounts in different start-ups directly within their network or through intermediary firms who assist the process.
Peer to peer lending (P2P lending)
One of the recent innovative financial products that allow potential creditworthy borrowers to profile themselves and attract investors directly or through a platform. E.g. Faircent. The platform pulls together money to form a larger pool of funds. People seeking capital for business can borrow from the collection of funds.
The above is only a reflection of how the investment avenues are evolving within the traditional asset classes and how new assets classes are emerging. Investors will always be able to find exciting options to invest in, but they must remain vigilant in determining an investment’s efficacy. Evaluate the opportunity in-depth, and when these decisions get complicated, you must consult your financial advisor.
The author is a senior finance professional with over fifteen years of work experience in corporate finance and has an affinity for personal finance and investment management. Please leave your comment or share thoughts on this article via email at firstname.lastname@example.org. For more articles, please visit the website www.decodefinance.in.
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Under any circumstances, the author shall not be liable for any views or analysis expressed in this note. Further, the opinions expressed are not binding on any authority or Court. We advise readers to consult their financial advisor for assistance in their specific case.