Alternate Assets

Alternative investments in India refer to investment options beyond traditional asset classes like stocks, bonds, and cash. These investments are typically less liquid and can be riskier, but they also offer the potential for higher returns and portfolio diversification. Here are some popular alternative investment options in India:

  • Real Estate: Real estate investments involve buying residential, commercial, or industrial properties with the expectation of rental income and capital appreciation. Real estate investment trusts (REITs) and real estate mutual funds are also available to invest in real estate indirectly.
  • Private Equity: Private equity involves investing directly in private companies, startups, or unlisted firms in exchange for ownership stakes. This type of investment is typically accessible to institutional investors and high net worth individuals.
  • Venture Capital: Venture capital is a subset of private equity that focuses on investing in early-stage startups with high growth potential. It involves providing capital to startups in exchange for equity or convertible debt.
  • Hedge Funds: Hedge funds pool money from multiple investors and use various strategies to generate returns. These funds may employ alternative investment strategies, including long-short equity, arbitrage, and derivatives trading.
  • Commodities: Investors can participate in commodities trading through commodity exchanges in India. Common commodities include gold, silver, crude oil, and agricultural products.
  • Art and Collectibles: Investing in art, antiques, and collectibles has gained popularity in India. The value of these items can appreciate over time, making them an attractive alternative investment.
  • Private Debt: Private debt investments involve lending money directly to companies or individuals in exchange for interest income. These investments offer fixed income potential and can be structured as debentures, private bonds, or peer-to-peer lending.
  • Structured Products: Structured products are complex investment instruments that combine traditional securities with derivatives. These products offer customized risk-return profiles based on investors’ preferences.
  • Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs): InvITs and REITs are investment vehicles that allow investors to participate in infrastructure and real estate projects, respectively, by investing in the trust.

Before investing in alternative assets, it’s crucial to understand the associated risks, liquidity constraints, and potential tax implications. Due diligence and consultation with a financial advisor are recommended to align alternative investments with your overall financial goals and risk tolerance. Additionally, some alternative investments may have limited accessibility based on regulatory requirements or minimum investment thresholds.

VIKA Wealth works with exceptional third-party AIF providers so that investors can diversify their portfolios and benefit from high-return opportunities in the long- run.

We at VIKA Wealth, help clients identify upcoming trends and sectors based on extensive research and through a strong industry network of private equity (PE) funds and venture capital (VC) funds both Onshore and Offshore.

Through a diverse alternative asset portfolio, we help our clients’ overall investment returns. Venture Capital Funds, Mid/ Late-Stage Private Equity, Distressed Funds, and Venture Debt are some of the opportunities we understand well.

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