Top 4 Safe & Secure Alternate Investments to Invest Our Hard Earned Money

by | Jul 21, 2021 | Personal Wealth, Uncategorized, Wealth management | 0 comments

Alternative Investments are the investments which are defined in Regulation of Securities and Exchange Board of India; these are privately pooled money investment which includes mutual funds, equity funds, general and life insurance. These investments are the choice of investment opportunities which investors should know before investing into any kind of Asset in the market.

Basically, this investment includes hedge funds, real estates, commodities, private equity and derivatives contracts, these are held by institutional investors and have high minimum investments, there is a lot of diversification in these types of investments and is held over for a long period of time, much longer than 12 months in comparison to short term investments.

Some Safe Alternative Investment Includes:-

1. Mutual Funds
2. Equity Funds
3. General Insurance
4. Life Insurance

Mutual Funds

Mutual funds are the investment funds which includes save money on the securities from the investors like stakeholders, shareholders and it also includes shares, bonds, market securities, assets and many other stocks, who wishes to invest their money with low cost. These funds are very flexible in nature as there is an involvement of liquidity ratio.

Details about Mutual funds

Mutual funds varies a lot as there are benefits of taxes and wide variety of huge choices among it, there is a comprehensive diversification in it which is convenient for the investors to invest, all the individuals or stake holders who invest in it has a full stake on the gains and losses equally.

Diversification in mutual funds itself suggests that it depends upon the categories of which securities does the fund manager invests in. These funds are accumulated with the pool of money for investing in shares and securities and are operated by professional managers for operating all the income of investors.

The funds are mostly taken from the public and are invested it in securities, bonds, stock or shares as the funds are mostly hired by the Board of Directors Mutual funds are redeemed as required which are known as NAVPS or net asset value per share, In this investment funds most of the managers are the owner of this fund as they adopt the analysts who can pick investments or can do the market research properly.

Equity Funds

In Mutual funds there are mostly three types of funds which are privately investment fund that includes equity funds, fixed income funds, and money market funds that buys ownership’s in businesses most often in the form of publicly traded common stock.

These funds are the Mandatory funds which are invested into stocks and papers of public limited company, their main motive is for long term investment goals, these funds are also convenient and are at low cost, these are basically classified into large capital, mid capitals, multi capitals, balanced, etc.

The other name of equity funds is stock funds, and these are principally categorized according to company size, its investment style port folio, etc. These funds are at high return rate and are very beneficial funds. At presently there are more than 2500 equity funds available.

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Insurance is referred to as a policy, in which an individual receives a financial safety and protection against the losses from an insurance company. Generally, there are two types of insurance:

Importance of Insurance

Life Insurance: This insurance is basically against an individual loss of income, that would be resulted if the person is no more or passed away, the person who is received as a beneficiary shall be safeguarded and proceed with it from the financial impact of that deceased person, life insurance includes the term of the person.

General Insurance: This insurance is also known as non-life insurance, it includes the policies of automobiles, home owner policies, this insurance comes under all the insurance except the life insurance and it totally depends upon the payment provided for the particular financial year.

General insurance also has some other name in other countries like in US and Canada, it is called as property and casualty insurance and in Europe it is called as Non Life Insurances. This insurance basically includes health, accident, home, motor, etc.

Thus, alternative investments are diversified with low cost and for unique, thus Mutual Funds, Insurance, and Equity funds does not come in conventional investment or the traditional modes of investments like stocks, bonds, cash, etc but these includes private equity, hedge funds, managed features, real estate, commodities and derivatives contracts, which are very certain and for long term goals with flexible nature that might attract investors to invest in it.

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