Best Alternative Investment Strategies to Consider in 2018

Best Alternative Investment Strategies to Consider in 2018

The whole purpose of an investment is to make more money. However, investment options like the stock market, mutual funds, etc. come with various risk factors associated with the capital market. There is a chance you may make very good money, or barely get back the amount you invested or actually lose money. If you don’t understand the economic and investment market cycles, it is always better to have professional investment guidance than blindly invest your great savings in the hope to get rich quick. Several banks – both public and private – offer mutual funds that are subject to market risk. Depending on how you invest your money, a mutual fund can prove to either be or not be ‘safe’ for you. However, if you wish to explore more and test the uncharted waters by giving a shot to alternative investment plans, then read to learn more about some options that may play out well for you.

Equity Crowdfunding

In this age of startups, equity crowdfunding seems like a good investment idea after all. Crowdfunding is where you and other people (the crowd) invest in a startup that is not listed on a stock market. You hold a certain number of shares in the company. Depending on whether the company does well or not, your investment will be affected likewise. There are several websites that give you access to the equity crowdfunding platform where you can invest in promising Indian or foreign startups.

Investment Strategies

Gold Investment

Growing up in an Indian household, you are certainly not new to this age-old investment tradition. If you are considering investments in gold, you can buy gold jewelry that can be multi-purposeful. Or, you always have the option to buy gold coins and biscuits. In any financial emergency, you can rely on selling your gold reserve for quick cash.

Invest in Real Estate

The returns are considerably high when you decide to invest in real estate. Once you pay your down payment, you can rent out your house and have a regular income coming in through rent. Real estate, in stable economies, will prove to be an appreciating asset. You can also, if you have the kind of money, invest in a commercial real estate for even higher returns.

Invest in Real Estate

Peer-to-peer Lending

Quite a concept like crowdfunding, in the case of peer-to-peer lending you contribute along with other investors to fund a loan that an individual requires. A bank has no role to play. You typically invest in a loan and get interested in rates that are mostly higher than other conventional offerings.

Fixed Deposits

Investment options like Fixed Deposits and PPF are popular among the masses for several reasons. First of all, you have nothing to lose as no market risk is involved in these ventures. NBFCs like Bajaj Finance offer one of the best FD interest rates as compared to other banking and non-banking financial companies. A fixed deposit can be wisely used if you are saving for specific goals you need to achieve in 3 – 5 years of time. Bajaj Finance has FD calculator on its website which you can use to determine your return on investment (ROI) and invest accordingly. You get the added benefits of flexible tenor, easy online payment options and more. However, breaking your FD before maturity will rather destroy the purpose of a fixed deposit. So, when you invest, make sure you don’t have to break it.