Securitised Debt :
A short-term financing arrangement where a company pledges its bills receivable as collateral to obtain a loan. Investors contribute to a fund that fulfills the company’s cash requirements, earning interest in return. If the borrowing company defaults, the intermediary gains ownership rights and collects receivables to repay investors.
- Returns Range: Depending on the specific SDI, the returns can range from 10% to 14% or even higher.
- Risk: SDIs are generally considered moderate risk because they are backed by receivables. However, credit risk and market conditions can impact returns.
- Liquidity: SDIs are less liquid compared to publicly traded securities. Investors should consider their liquidity needs.
- Investment Horizon: 30 to 120 days.
P2P Lending :
Investors contribute funds that are distributed to individuals seeking loans. Borrowers can get a loan up to 10 lakhs but only Rs.500 from one lender. Investors earn returns of 10% to 15% over 10 to 15 months. The invested amount is held in an escrow account to mitigate risk. P2P platforms must adhere to RBI regulations and have to be RBI registered.
- Returns Range: P2P lending platforms offer 10% to 15% returns to lenders. However, these returns can vary based on the borrower’s creditworthiness and platform.
- Risk: P2P lending involves credit risk, as borrowers may default. Diversification across multiple loans can mitigate this risk.
- Liquidity: P2P lending generally comes with a lock-in and hence, are illiquid.
- Investment Horizons: 6 months to 3 years.
Fractional Property
Investing :
Investors contribute a minimum of 25 lakhs to a company specialising in commercial properties. They become proportional owners and receive incremental rental income (7.5-8.5% annually). When the company identifies capital appreciation opportunities, it sells the property, returning invested capital along with compounded capital gains (6-7% annually). Investors can participate in high-value commercial properties without the burden of full ownership.
Investors exit upon property sale, facilitated by annual valuations and an in-house legal team.
- Returns Range: Fractional ownership in real estate offers returns ranging from 13% to 15%.
- Risk: While fractional ownership diversifies risk, real estate markets can be volatile. Due diligence is crucial.
- Liquidity: Fractional ownership provides liquidity through secondary markets.
- Investment Horizons: Varies based on the specific property and investment strategy. Typically, 4 to 6 years.
Funding Movies and Web-series :
Funding Movies
and Web-series :
A financing solution where producers secure loans using their OTT rights and other rights as collateral. Investors contribute to the fund, earning 18% interest. In case of default, investors hold the first lien on income from various movie rights until the loan is fully repaid.
- Returns Range: The returns stand at an impressive annualised 18%.
- Risk: Risk of loss is low to medium but the risk of fluctuations in tenure is medium to high.
- Liquidity: While investors can earn interest, the liquidity of their investment is limited.
Investors’ funds are locked-in throughout the period of funding. - Investment Horizons: 1-4 months, 4-7 months, 9-14 months.
1. Securitised Debt
Securitised Debt :
A short-term financing arrangement where a company pledges its bills receivable as collateral to obtain a loan. Investors contribute to a fund that fulfills the company’s cash requirements, earning interest in return. If the borrowing company defaults, the intermediary gains ownership rights and collects receivables to repay investors.
- Returns Range: Depending on the specific SDI, the returns can range from 10% to 14% or even higher.
- Risk: SDIs are generally considered moderate risk because they are backed by receivables. However, credit risk and market conditions can impact returns.
- Liquidity: SDIs are less liquid compared to publicly traded securities. Investors should consider their liquidity needs.
- Investment Horizon: 30 to 120 days.
2. P2P Lending
P2P Lending :
Investors contribute funds that are distributed to individuals seeking loans. Borrowers can get a loan up to 10 lakhs but only Rs.500 from one lender. Investors earn returns of 10% to 15% over 10 to 15 months. The invested amount is held in an escrow account to mitigate risk. P2P platforms must adhere to RBI regulations and have to be RBI registered.
- Returns Range: P2P lending platforms offer 10% to 15% returns to lenders. However, these returns can vary based on the borrower’s creditworthiness and platform.
- Risk: P2P lending involves credit risk, as borrowers may default. Diversification across multiple loans can mitigate this risk.
- Liquidity: P2P lending generally comes with a lock-in and hence, are illiquid.
- Investment Horizons: 6 months to 3 years.
3. Fractional Property Investing
Fractional Property
Investing :
Investors contribute a minimum of 25 lakhs to a company specialising in commercial properties. They become proportional owners and receive incremental rental income (7.5-8.5% annually). When the company identifies capital appreciation opportunities, it sells the property, returning invested capital along with compounded capital gains (6-7% annually). Investors can participate in high-value commercial properties without the burden of full ownership.
Investors exit upon property sale, facilitated by annual valuations and an in-house legal team.
- Returns Range: Fractional ownership in real estate offers returns ranging from 13% to 15%.
- Risk: While fractional ownership diversifies risk, real estate markets can be volatile. Due diligence is crucial.
- Liquidity: Fractional ownership provides liquidity through secondary markets.
- Investment Horizons: Varies based on the specific property and investment strategy. Typically, 4 to 6 years.
4. Funding Movies and Web-series
Funding Movies and Web-series :
A financing solution where producers secure loans using their OTT rights and other rights as collateral. Investors contribute to the fund, earning 18% interest. In case of default, investors hold the first lien on income from various movie rights until the loan is fully repaid.
- Returns Range: The returns stand at an impressive annualised 18%.
- Risk: Risk of loss is low to medium but the risk of fluctuations in tenure is medium to high.
- Liquidity: While investors can earn interest, the liquidity of their investment is limited.
Investors’ funds are locked-in throughout the period of funding. - Investment Horizons: 1-4 months, 4-7 months, 9-14 months.