As India continues to march towards becoming an economic powerhouse, investors are increasingly looking for investment opportunities outside the traditional investment ecosystem to back their portfolio and safeguard their wealth from future financial downturns.
1) What Are Alternative Investment Funds?
2) Different Types Of Alternative Investment Funds:
3) Are Alternative Investments Worth It?
4) Invoice Discounting: A New-age Revolution In Alternative Investments
A niche financial instrument that is rapidly gaining traction in the Indian financial market is Alternative Investment Funds (AIFs). Additionally, with the increasing market volatility, rising interest rate, and uncertainties and lack of trust in publicly traded securities and markets, investors are finding alternative investment as a remunerative space to invest.
AIFs are privately held investment funds of either domestic or foreign origin, organised in the form of an LLP, corporate body, company or trust. In simple words, unlike stocks, bonds and cash, these are investments in asset classes that don't reflect the ups and downs of the traditional market.
Alternative investment platform are useful investment avenues for investors looking to diversify their portfolios at minimal risk over traditional funds. It’s an easy way to start off for first-time investors and not necessarily restricted to only ultra-high-net-worth individuals or HNIs and institutions.
Private Equity - A private equity investment includes owning a portion of a company that is not publicly owned or traded or quoted on a stock exchange. The investment strategies include contributing venture capital, executing leveraged buyouts, and investing growth capital.
Commodities - Investment in soft commodities from agricultural produce like wheat, sugar, corn, rice etc. or hard commodities that include energy in the form of natural gas, crude oil and metals like gold, copper, aluminium, silver etc. It depends entirely on the rise or fall of a specific commodity.
Real Assets - These are physical or tangible assets which have an intrinsic worth like precious metals, real estate, commodities, equipment, land and natural resources. The liquidity is lower for these investments and selling them is not quantifiable.
Venture Capital - Investments in venture capital is financing by investment banks, wealthy investors, and any other financial institutions given to start-up companies and small businesses having the potential to break out for long-term growth.
Fund of Funds - is investing in other hedge funds or mutual funds. The disadvantage though is the addition of annual management and performance fees.
Private Placement Debt - Private placement is a non-public offering with a funding round of securities through a private offering, mostly to a small or fixed number of chosen investors. The problem is the limited count of investors.
Apart from the above, even direct investments in start-ups and private companies, arts and antiques, precious metal, vintage coins, rare stamps, and other collectables can be categorised under AIFs.
The main advantage of Alternative Investment funds is that they tend to behave differently than non-traditional investments, adding them to a portfolio will allow you to have a broader diversification, lower volatility, reduce risk and enhance returns.
Alternative investments are useful investment avenues for investors looking to diversify their portfolios at minimal risk over traditional funds. It’s an easy way to start off for first-time investors and not necessarily restricted to only ultra-high-net-worth individuals or HNIs and institutions.
A simple and profitable alternative investment plan with appreciable gains is Invoice Discounting or Bill Discounting.
Invoice discounting or Bill discounting is an easy and unique alternative investment of using unpaid invoices by businesses against blue-chip companies. The investment allows investors to purchase unpaid invoices and at the end of the tenure investors receive their capital amount plus the profit earned. This concept of alternative sourcing will benefit investors in:
Unique approach to portfolio diversification:
Reliable Alternative Investment:
Reduce the Impact of Market Volatility:
Enjoy a stable and secure digital process with the technology-embedded KredX platform.
How Does It Benefit You As An Investor?
To start investing in KredX, one has to be:
When compared to other AIFs in the market, invoice discounting as an alternative investment helps you at times of lower volatility, broaden diversification and enhance returns. Invoice discounting is for seasoned investor, HNI or ultra-high-net-worth investor.
The returns on your investment will be governed by market forces on the basis of demand and supply economics. Expected yield corresponding to deals will be made available to investors recommended by you before any purchase, this ensures that investors are aware of their returns before initiating the fund transfer
No. A zero-liability invoice discounting service is provided by KredX as the working capital is availed using unpaid bills.
No. Being an ISO 27001:2013 certified private entity which deals with secure information from the clients, KredX takes strict measures in dealing with secured information.
KredX provides the option of short-term investments to our investors due to which the maximum tenure for a discounted invoice is 90 days.