THE WORLD OF investing has always subscribed to the age-old adage of ‘higher the risks, greater the rewards’. This mantra suggests that those willing to take on substantial risks stand a chance of earning sizeable returns. In the increasingly adventurous world of investments, fixed deposits have long been a favourite among conservative investors due to their stability and low risk. But, with inflation inching higher, coupled with the need to generate significant returns, alternative investments with higher returns have started gaining traction.
The new buzzwords in alternative investment products are asset leasing and invoice discounting, which offer annual returns of up to 20 per cent. But it’s important to remember the caveat such instruments carry: the higher risks involved. Not only does this put the spotlight on the shift in investment avenues that can satiate investors’ heightened appetite for more risk, it also signals a deviation from the earlier focus on traditional instruments like fixed deposits and bonds, among others. These new alternative investment avenues demand a leap of faith from investors. But how do they work and what are the risks?
THE AVENUES
Before the outbreak of Covid-19, exotic investments were usually the sole preserve of high net-worth individuals. But the fixed income market in India has undergone a sea change since then, with these products becoming readily available to retail investors, thanks to the rise of fintech platforms dealing in them.
Take invoice discounting, for instance. The Reserve Bank of India (RBI) recognises it solely through its Trade Receivables Discounting System (TReDS) platform. But, TReDS does not accommodate retail investors. Eyeing this opportunity, fintech firms have launched innovative products that allow retail investors to participate.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
"OFFER MORE SOPS FOR THE NEW TAX REGIME”
Dinesh Kanabar, CEO of Dhruva Advisors, on the tax-related measures expected in the Budget, reforms, and more
IN SEARCH OF A BOOSTER SHOT
TO BOOST GROWTH, THE GOVERNMENT MAY FOCUS ON INCREASING CAPEX AND BOOSTING DOMESTIC CONSUMPTION, PARTICULARLY TARGETING THE MIDDLE CLASS. THIS COULD PROVIDE A FILLIP TO STOCKS IN THOSE SECTORS
HEALTH BOOST
THE HEALTHCARE SECTOR IS EXPECTED TO RECEIVE A SHOT IN THE ARM IN BUDGET 2025-26, WITH A FOCUS ON PRIMARY HEALTHCARE, DIGITAL HEALTH, AND BOOSTING PHARMACEUTICAL MANUFACTURING AND RESEARCH. BUT CHALLENGES LIKE THE SHORTAGE OF HEALTHCARE PROFESSIONALS REMAIN
"Indian aviation to see double-digit growth for the next 30 years"
Vinay Dube, Founder & CEO of Akasa Air, on the country's aviation sector, why the airline was set up, and more
TIME TO BE SMART
This year could be a good time to take home some profits, reduce risk, and shift to large-cap investments
CLOTHES MAKETH A MAN
THE MEN’S LUXURY MARKET IN INDIA, ONCE A NICHE SEGMENT, IS WITNESSING AN EXTRAORDINARY RISE AND IS THRIVING, THANKS TO SOCIAL MEDIA AND RISING DISPOSABLE INCOMES
Front-running Redux
Ketan Parekh has again been accused by Sebi. This time the allegations are of front-running, an unethical practice in financial markets
Triumph of Engineering
The Udhampur-Srinagar-Baramulla Railway Line in J&K is set to expedite trade and tourism
MAKING A MARK
IN A LANDSCAPE DOMINATED BY THE BIG FOUR ACCOUNTING FIRMS, DHRUVA ADVISORS HAS STRUCK IT BIG ON THE BACK OF ITS TAX AND REGULATORY ADVISORY SERVICES, ASSISTING SOME OF THE MARQUEE DEALS OF INDIA INC.
TIME FOR A TAX BREAK?
INDIVIDUAL TAXPAYERS LOOK FORWARD TO THE BUDGET EVERY YEAR HOPING FOR A BIG TAX BREAK. IT HAS ELUDED THEM FOR YEARS, BUT WITH HIGH INFLATION, MODERATING URBAN CONSUMPTION, AND ROBUST TAX COLLECTIONS, WILL THE MIDDLE CLASS GET A TAX BREAK IN FEBRUARY?
