THE ALTERNATIVE UNIVERSE
Business Today India|February 04, 2024
Exotic alternative investment options like asset leasing and invoice discounting represent the next frontier for those chasing high returns. But, as is often the case, the risks are elevated, too
TEENA JAIN KAUSHAL
THE ALTERNATIVE UNIVERSE

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.

Denne historien er fra February 04, 2024-utgaven av Business Today India.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra February 04, 2024-utgaven av Business Today India.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BUSINESS TODAY INDIASe alt
"Moving to cloud helped us grow❞
Business Today India

"Moving to cloud helped us grow❞

What was the problem you were grappling with?

time-read
1 min  |
November 24, 2024
She's Got Time
Business Today India

She's Got Time

MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP

time-read
3 mins  |
November 24, 2024
RISING STAR
Business Today India

RISING STAR

PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.

time-read
1 min  |
November 24, 2024
Building on a Legacy
Business Today India

Building on a Legacy

WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.

time-read
1 min  |
November 24, 2024
LEADER IN INNOVATION
Business Today India

LEADER IN INNOVATION

AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.

time-read
1 min  |
November 24, 2024
WAITING IN THE WINGS
Business Today India

WAITING IN THE WINGS

Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025

time-read
1 min  |
November 24, 2024
A DECENT PROPOSAL
Business Today India

A DECENT PROPOSAL

IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?

time-read
5 mins  |
November 24, 2024
Women and the STEM Bias
Business Today India

Women and the STEM Bias

EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.

time-read
3 mins  |
November 24, 2024
ROCKET WOMEN
Business Today India

ROCKET WOMEN

WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.

time-read
6 mins  |
November 24, 2024
ONE STEP FORWARD
Business Today India

ONE STEP FORWARD

THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.

time-read
6 mins  |
November 24, 2024