Alternative investments can help combat sluggish production

1. Alternative Investments Can Help Combat Sluggish Production ALTSMART

2. INTRODUCTION Imagine if you found out that the wealthiest Indians were eating differently than everyone else. Not simply that they ate at exclusive restaurants or private clubs, but that there was literally different food on their plates. They were eating meals that were meant to be healthier for them and their family. Now, you feel that you have been handed a very different menu. However, too often, that's exactly what happens in the world of investment.

3. The Menu • They represent a different way of investing. The best thing about alternative investments is that they become a strong and consistent source of absolute and non-correlated returns for investors. • The very wealthy have a very different menu and for one, it is longer. it also includes investments such as hedge funds, private equity funds, venture capital funds, and real estate funds. These investments are popularly known as alternative investments. • Let's think of a traditional menu of most Indian investors. It is pretty short and comprises basically stocks, bonds, and mutual funds.

4. ZIG ZAG • Alternative investments seem to zig when the stock markets zag. In simple terms, they tend to perform well in the face of declining stock markets owing to strong investment strategies, stronger research, and wider asset diversification. • Thus, alternative investments act as a good mode of portfolio diversification to improve an investor's 'risk vs. return' profile. That said, a good amalgamation of clear financial objectives and a shrewd fund manager becomes vital for ensuring sturdy returns from alternative investments.

5. Alternative investment funds • Alternative investment funds (AIFs) tend to pool in and build their corpus from high net-worth individuals (HNIs). They invest this corpus in various asset classes such as unlisted securities, small business, start-ups, and SMEs largely to promote entrepreneurship, while generating strong returns for the investors. • India in the past decade has become a highly popular investment hub, with venture capital and private equity funds investing large corpuses in India's growth story and industrial growth.

6. Alternative investments have made a huge difference to the portfolio of many an investor, which is why most investors are leaving enough room for allocating alternative investments in their portfolio. Today, alternative investments are in the portfolio of almost everyone who is a millionaire. • Now, they can also access these strategies through liquid alternative funds and trade with the ease of a mutual fund. Yes, there are no guarantees in the world of investing. However, including some of these alternative investments in your portfolio might just give you some peace of mind.

7. THANK YOU!