Alternative investments are financial asset that does not fall into one of the conventional investment categories such as real estate, fixed deposits, listed stocks, AAA bonds etc.
Alternative investments is largely suited to high networth or institutional investors owing to its illiquid or high investment requirement nature. It can be classified as follows:
- Funds: Private funds that are regulated by authority such as SEBI and managed by professionals is an attractive investment class. It provides an investor to diversify its investments into different fund themes. For Eg. Real Estate, Venture Capital, Private Debt, Private Equity, REIT, Invit, etc.
- Pre-IPO Allocation: This is an investment option where the investments go into direct equity or convertibles at a discount to the IPO price. The company raises investments few months or year before it opens for the IPO to the general public. These investments are raised for various purpose such as expansion, other business expenses, or to increase the credibility of the IPO by bringing well known investors in the market.
An investor can earn decent returns where he gets an opportunity to enter into Pre-IPO investments of a good company.
- Direct Private Equity / Seed Funding / Venture Capital Investments: Investing directly into equity of good startups or growth stage companies bypassing the need to invest in funds. With India in its golden growth period, there are multiple opportunities available in the market. Saptarishi Capital will present you these kinds of opportunities that are vetted, analysed, and advised by the industry experts.
Loan against securities: Loans to corporates listed on the stock exchange against the pledge of the promoters shares. It is a secured debt that fetches good rate of return.
- Real Estate in other countries: The present era provides us the opportunity to get information on the world relatively easily at a click of a button, and easy connectivity to travel. An investor can diversify its investments in real estate to various other countries such as Dubai, London, and others. There can various purpose to own properties in other countries such as children shifted abroad, business related activities, personal use, diversification of the investments, etc.
- Fine arts and collectibles: Fine art and collectibles is a broad category in which assets can be hard to value. Items here can range from a piece of artwork, such as a painting or sculpture, to valuable sports card or other memorabilia. These items are valued based on market demand and what someone will pay for them. There are options to invest in these categories by owing a certain portion through the tokenization of the assets.
There are other categories available such as Cryptocurrencies, Peer to Peer lending, Farmland etc that we do not cover and recommend here.
Happy Investing!
