Owning rental properties can generate income through rent and potential property value appreciation.
Wealth Creation: How You Can Accumulate Rs 1 Crore Using THESE Alternative Investment Ideas. Image: Canva
There are multiple traditional investment options like savings bank account, fixed deposits, post office small savings scheme among others that can help an investor accumulate wealth over the time. Mutual fund investments, equity trading are among other well-known popular methods of wealth creation which offer higher returns but with a greater degree of risk. However, there are many alternative investment options as well which can offer attractive returns and help you reach your goal faster.
Bhuvan Rustagi Co Founder and COO of Per Annum listed alternative investment ideas to consider:
a) Rental Properties: Owning rental properties can generate income through rent and potential property value appreciation. Requires management or hiring a property manager.
b) Real Estate Investment Trusts (REITs): Invest in a pool of real estate without the hassle of direct ownership. More liquid than physical property.
Consider These Before Investing in Real Estate:
– High initial investment
– Management responsibility (for rentals)
– Illiquidity (for physical properties)
2) Peer-to-Peer (P2P) Lending
a) Act as a lender to individuals or businesses through online platforms. Earn interest on the loans.
b) Requires research on borrower creditworthiness and risk tolerance for potential defaults.
c) In recent times, the Indian P2P Lending landscape has seen dramatic acceptance by the retail investor, now over 10 lakh investors have invested over Rs 10,000 crore across different P2P Lending platforms as they see the clear benefits of the product which include inflation beating stable returns, seamless investing process where the investor can deploy funds just at a click and the platforms do the rest and cash management, liquidity options during emergencies and overall transparency across platforms.
a) Start a Business: Owning a successful business can bring significant returns. Requires strong business acumen and hard work.
b) Angel Investing: Invest in early-stage companies with high growth potential. High risk, high reward scenario. Requires thorough due diligence.
c) Collectibles: Investing in things like art, rare coins, or antiques can appreciate over time. Requires knowledge of the specific collectible market.
d) Asset Financing: Participating in products where assets are partly owned by a group of investors and leased out to large companies which then pay lease rentals to the investors.
e) Invoice Discounting: This is a working capital financing model where investors finance invoices raised to primarily blue chip companies by SMEs and MSMEs.
– Diversify: Don’t put all your eggs in one basket. Spread your investments across different asset classes to manage risk.
– Research: Do your research before investing in any alternative asset class. Understand the risks and potential rewards.
– Consider Risk Tolerance: Alternative investments can be riskier than traditional stocks and bonds. Align your investments with your risk tolerance.
– Seek Professional Advice: Consider consulting a financial advisor for personalized guidance based on your financial goals.
Building wealth takes time and effort. Remember, there’s no guaranteed “get rich quick” scheme. By exploring these options and conducting proper research, you can make informed investment decisions and increase your chances of reaching your financial goals.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of TN Network.)