In this presentation we learn the various alternative ways to invest that are available in India

1. ALTERNATIVE
INVESTMENTS –
INDIAN
SCENARIO
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2. What are
Alternative
Investments?
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Alternative investment options include a
broad range of non-traditional assets like
P2P lending, lease financing, venture capital,
and more.
Even real estate falls under the category of
alternative investments.
Alternative investment options do not
include mutual funds, stocks, bonds, and
cash, all of which are common investment
options.

3. Facts about Alternative Investments
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INDEPENDENT OF THE
MARKET
GENERATE PASSIVE
INCOME
DIVERSIFICATION
OPTION

4. Independent of the Market
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Most alternative
investments are not
linked to the market, so
the general market
conditions and volatility
do not apply to them.
Thus, alternative
investments can become
a hedge against
inflation.
However, there are risks
involved with alternative
investments.

5. Generate Passive Income
Alternative investments may
generate passive income
which is a recurring theme
seen across some, if not all,
alternative assets.
The interest payments
or gains can help you
after retirement.
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6. Diversification Option
Alternative investments offer easy
and efficient channels for
diversifying your portfolio.
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7. Examples of
Alternative
investments:
P2P Lending
Consumer Loans Via Merchants
Real Estate
Venture Capital
Antique And Commodities
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8. P2P Lending
• Peer to peer lending is one of the most recent
forms of alternative investments. P2P lending
puts borrowers directly in touch with
lenders without a traditional intermediary like a
bank.
• Lenders prefer to invest in P2P lending
because it can generate passive income
through recurring monthly interest
payments. Other benefits include lucrative
interest rates (12%) and risk-based
investment options.
• However, it’s important to invest via platforms
that are safe, trusted, regulated and reliable.
For example, Cube’s P2P partner, Faircent, is
an RBI certified NBFC.
• Borrowers are thoroughly vetted and Faircent
ensures that you lend only to creditworthy8

9. Consumer Loans Via Merchants
This is another form of P2P
lending where you lend to
prime retail borrowers who
have a high credit score.
Investors prefer consumer loans
via merchants like LiquiLoans
because it can generate passive
income with returns between 8-
9.5%. Moreover, the borrowers
are thoroughly vetted.
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10. Real Estate
Real estate investments are alternative investments.
Considerable effort is to be put to buy real estate property.
But based on the locality and the economic conditions, real
estate as an alternative investment can have a potentially
high resale value. Real estate can also generate passive
income through rent or lease.
There are obvious advantages to investing in real estate, but
the property markets are tough. Thus, It’s important to
research the locality and future potential before investing in
real estate.
A few cons include the heavy paperwork involved in real
estate transactions, large minimum investment amounts,
physically travelling to the property to keep a check on it, and
the upkeep cost.
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11. Venture Capital
Venture capitalist finances small businesses or
startups in exchange for equity. Compared to P2P
lending or even real estate, venture capital requires
significantly higher capital.
However, you can earn dividends and royalties from
the business you’ve invested in. The company’s
future sale can also fetch you a handsome buyout.
There are high risks associated with venture capital
as an alternative investment since the success of
your investment is directly intertwined with the
success of the business you are investing in.
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12. Antiques & Commodities
Buying and selling antiques and commodities like old bottles of wine and certain mint-condition
action figures or comic books is a legitimate alternative investment that many investors dabble in.
But this investment space is only occupied by a select few due to various uncertainties. For starters,
coming to a consensus on the valuation of an antique commodity is extremely difficult.
Another problem with antiques and commodities as an alternative investment is the holding
period: If the product gains value with each passing year, when is the right time to sell?
Nevertheless, there have been comic books sold for $3.2 million dollars (CGC 9.0) and antiques like
Pinner Qing Dynasty Vase sold for $80 million dollars.
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13. Are
Alternative
Investments
Safe?
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Every investment carries its own
benefits and risks. Thus, it becomes
important to invest with advice from a
trusted financial advisor.
Investing in alternative investments
options through platforms that are
honest and transparent can help you gain
confidence in the investment.

14. Conclusion
Alternative investments are one of the best
ways to diversify your portfolio. Most
alternative investments can generate passive
income, which can be useful for post-
retirement expenses and for paying recurring
bills.
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15. THANK YOU
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