Updated Aug 24, 2024 14:14 IST
Real Estate: Fractional investing gaining popularity in India (Pic: Shutterstock/ET NOW)
Fractional Investing: Who doesn’t want to secure their family’s future by creating a wealth. The traditional ways of creating wealth by investing in fixed deposits and other schemes are now being reimagined. One new trend that is making headlines is the fractional ownership in the real estate sector. It has emerging as a noteworthy option when it comes to wealth creation with a completely fresh investment landscape, offering handsome returns.
Samir Bhandari, co-founder, CFO, hBits (a fractional ownership platform), said that gone are the days when real estate investment was synonymous with hefty down payments and long-term commitments. There has been a shift in investment mindset in the recent years.
“The young generation is increasingly drawn to alternative investment options such as fractional ownership. The fractional ownership is a model that allows individuals to invest in high-value properties,” he said.
Fractional Investing Gaining Popularity
Fractional investing is gaining popularity in India as it significantly reduces the risk through diversification. It offers access to unattainable assets along with regular and high returns depending on the asset.
“Fractional ownership enables investors to buy a share of a property. Thus helps them to diversifying their portfolios while cutting down the risk. The returns here compared to traditional fixed deposits is noteworthy. This shift towards fractional investing reflects a broader change in mindset of our youth. Today’s investors are looking for flexibility, accessibility and opportunities that meet their financial goals,” he said.
Passive Income
The concept of passive income sounds very good. It resonates deeply with today’s youth, who are keen on building wealth while maintaining their primary careers.
Fractional ownership, he said, presents an attractive solution to this. “By investing in well-managed properties, individuals can earn rental income without having the burden of managing the property. This model aligns perfectly with the financial goals of a generation that values both financial growth and lifestyle balance”.
“The rise of technology-driven platforms has further simplified the process of fractional investing. With just a few clicks, investors can explore various properties, analyse potential returns and make informed decisions. This ease of access empowers investors to take charge of financial futures, fostering a sense of ownership and responsibility,” he added.
On the recent regulatory framework by SEBI, Bhandari explained that the regulator has brought clarity, enhancing transparency and investor protection. “The regulatory support is crucial for building trust among investors who may be wary of new investment models”.