Alternative Investments

Alternative investments are financial assets that don’t fall under normal asset classes. Such asset class is generally held by High Net Worth Individuals, Institutional Investors because of their complex nature, high risk & illiquidity. Some of the famous Alternative investments are as follows:

Real Estate Investment Funds (REITs & INVITs)
Unlisted Shares
Hedge Fund

Unlisted Shares

These are the shares of companies that are not listed on any stock exchanges, and therefore are not tradable on a public stock exchange platform. Generally, these are traded through over the counterparty transactions and are known as Over The Counter (OTC) transactions. As on currently, some of the unlisted shares are HDB Financial, Reliance Retail, Chennai Super Kings etc.

Hedge Funds

Hedge funds are unregistered private funds of funds that invest and trade in market through different trading strategies

Real Estate Investment Trusts

Another type of alternative investment class is Real estate but investing in it requires huge capital. Therefore, REits & InvIts can be a golden opportunity for investors to invest in real estate and make it affordable to them. It’s an investment vehicle that allows all types of investors to invest in real estate even with small amounts. REITs ensure factors like security of cash flows, leverage protection, easy exit which makes it a point of attraction for real estate investors to escape the troubles of Iiquidity.