Diversifying one’s portfolio beyond stocks is essential in the present market. Time and again experts have stressed on the mantra of diversification. “If you’re looking for ways to create wealth and enhance portfolio performance, you have to go beyond stocks & mutual funds and create a diversified portfolio. Fortunately there are several non stock–market linked investment options that you can use to achieve this goal,” said Nikhil Aggarwal, Founder & CEO at Grip.
1) Corporate Bonds
You can invest in corporate bonds if you wish to earn stable returns over a 12 to 36 month period. This investment is ideal for risk-averse investors seeking to beat inflation, earn more than fixed deposits and move idle money sitting in their savings account to an asset that can earn up to 11% YTM. “You should opt for listed and rated corporate bonds here as they give you an additional layer of credibility,” said Nikhil Aggarwal.
2) Digital Gold
Digital gold is a mode of investing in physical gold. It is just like the regular gold, can be bought online and is stored in insured vaults by the seller on behalf of the customer. You can buy or sell 24 karat Hallmark gold for as low as ₹1.
3) Fixed Deposit
Fixed deposit is a safe investment option that guarantees consistent interest rates, special interest rates for senior citizens. In order to combat inflation, the RBI has increased the repo rate by 225 basis points since May, reaching 6.25% in FY23. The hike in repo rate has made the FD rates more lucrative for investors. Acoording to Sucheta Mahapatra, term deposits can also be considered. “3 year+ FDs that are now offering yields upwards of 7%,” she said.
4) Real estate
For those with a longer-term investment horizon, real estate is an interesting class to evaluate especially through newer instruments like REITs and fractional real estate investing through digital platforms, said Sucheta Mahapatra.
5) Peer to Peer (P2P) Lending
Peer-to-peer lending is a great way to earn 10-12% returns. Satyen Kothari, CEO & Co-Founder Cube Wealth said that investors should look into it as a means to diversify their portfolio outside of the stock market. “This choice is now available to regular investors,” he added.
6) Asset Leasing
Asset leasing is a lesser-known investment option that allows you to invest money used to lease physical assets to businesses and receive consistent returns from them. “It may help you earn up to 12% post-tax profits,” said Satyen Kothari.
7) Startup Equity
You can also explore Startup Equity for long-term goals if you are open to the higher risk-reward ratio. Investing in high-growth, early-stage companies can help investors take advantage of the booming startup ecosystem. “Such investments were earlier only accessible to VCs, angel investors and HNIs with the right connections,” stated Nikhil Aggarwal. Today there are several platforms that are democratising access to such investments and offer them at reduced ticker sizes. This means you get to invest with as little ₹2,00,000 instead of double digit lakhs or crores, he added.
8) Inventory Finance
Investing in Inventory Finance is a great way to achieve your short-term goals as there are options with tenures ranging from 1-13 months. According to Nikhil Aggarwal it is ideal for investors looking for faster, inflation-beating returns over a short tenure by financing inventory for companies.
