Traditionally the preserves of wealthy investors, alternatives to traditional investment assets have been used as a tool to diversify and optimise the performance of large pension and investment portfolios for many years. Today, some Investors feel that portfolios consisting solely of stocks, bonds and cash leave them over-exposed to the performance of financial markets, and are instead allocating more capital to alternative assets such as in order to diversify out risk and optimise portfolio performance. At Wealth Navigator, we also provide an opportunity for investors to have their exposure into investments which are non-traditional in nature and have a huge potential to give returns which are much more than the usual investment. Such investments are customised according to the type of investment avenues and the investors.
Private equity is a source of investment capital for the purpose of investing and acquiring equity ownership in unlisted companies. Partners at private equity firms raise funds and manage these funds for the purpose of yielding favourable returns for their shareholder clients, typically with an investment horizon between four and seven years.
Venture capital (VC) is financial capital provided to early-stage, high-potential, high risk, growthstartup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel Idea or a business model. In addition to angel investing and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company’s ownership and consequently value.
Real Estate Funds
Like mutual funds, real estate funds are founded by a group of real estate professionals/experts to ‘manage’ property/real estate for the investor. Generally, Real Estate Funds typically own large commercial office spaces, hotels and rely mainly on rental incomes. However, there are some that are more focussed on capital appreciation as well. They buy, develop and sell property and share profits with investors from any capital appreciation on the sale of property. Apart from sale of property, real estate funds also make money from rentals on property owned by them. Some real estate funds may not actually own property as that may involve above-average risk from volatility in property prices. Instead, such funds invest in bonds/instruments that are secured by property. The coupon rate that they receive on these bonds/instruments is then distributed to investors/unit holders as dividends.
A structured product, also known as a market-linked product, is a pre-packaged investment strategy based on derivatives such as a single security, an index, debt issuances or even foreign currencies. Most structured products that are sold in India, have ‘principal protection’ function as the key, which means that the investor is assured that he will not lose anything from what he has invested. Structured products are designed to facilitate highly-customised risk-return objectives.
Our associations with various renowned Banks, Financial Institutions and companies put us in a position to offer the best investment opportunity to our clients.