Traditional and new-age investment avenues for investors in the current market

In today’s market, investors have a lot of options available to them to park their money for the future. Whether you’re looking for long term savings, quick returns, low risk or high yields, there’s a viable investment route for every kind of investor.

Here’s a look at some of the more popular options out there in the market today and why they’re attractive to a certain kind of investor. To make it easier, we’ve broken it down to traditional investment options that have been tried and tested over the years, and some newer investment avenues that are fast gaining popularity among investors for various reasons.

Let’s start off with some age-old traditional investment routes.

Equity markets and mutual funds: Equity markets are a place for investors to make their bets, and park their money, directly in listed companies through the stock market.

While this is an attractive option for those with a fair knowledge about the markets looking to make quick returns, this is currently a hugely volatile option. Investors looking to take this route need to be well aware that external market forces make this option extremely risky and unpredictable.

Fixed deposits and debt mutual funds: A fixed deposit is a type of investment wherein the investor is assured of a fixed return after a specified period of time, in the understanding that the funds may not be withdrawn before its tenure.

While FDs have remained a conventional investment option for Indian families for years, recent trends have shown a significant shift to debt mutual funds.

Through debt mutual funds one can invest their money in government bonds, debt securities, and other fixed-income instruments.

While both are relatively low-risk investment options, a slightly higher return rate coupled with high liquidity and periodic returns have given debt mutual funds a slight edge over FDs in the current market.

Real estate: Real estate investment is where you invest your money directly in physical land or property. This is an age-old investment route that many choose to go down since, for the most part, land tends to appreciate over time.

Although relatively less risky than some other investment channels, real estate is less liquid and is also not free from market risks.

Gold: Gold has been one of the most preferred investment routes in India since ages. While earlier people would invest in gold jewelry, coins, or utensils, today many online investment schemes have opened up the market considerably and improved its liquidity.

One of the main reasons for investing in gold has been its peculiar quality to appreciate during a market downturn since its demand increases.

With many new investors in the market looking for novel options, a few new-age investment avenues have opened up in recent times. Let’s take a look at some of the more popular ones currently in the market.

Angel investing: Through angel investing, an individual can provide financial backing to a small startup in exchange for part ownership in the company as equity.

Most angel investors who choose to go down this route are looking for high returns while staying mindful of the high risks associated with investing in startups at its early stages.

Invoice discounting: This is a novel investment option for individuals and corporates wherein one can purchase an unpaid invoice raised by a company at a discounted price and receive returns on the same over a specified tenure.

Shorter tenures, above-market returns, and low-risk factors have made this a popular choice for investors looking to diversify their portfolio with an alternative investment.

Peer-to-peer lending: P2P lending is a type of financing platform that connects borrowers and lenders without the presence of any intermediaries such as banks.

This has become an attractive investment opportunity for lenders due to high interest rates, low costs, and the possibility of quick transactions due to lack of middlemen.

Revenue-based-financing: Revenue-based-financing is when an investor provides growth capital for a young company in exchange for a portion of their future revenue.

While a fairly new method of financing, this option is especially attractive to investors who wish to promote local brands and help them grow the business. RBF also promises assured monthly returns and a quick turnaround of your initial investment with attractive rates of return.

Klub was founded with this exact vision in mind — to revolutionize investments in growth capital for local brands and to help investors diversify their investment portfolio, get high returns on their money all the while promoting loved businesses.

If you’re interested in investing in our specially curated, high growth brands, reach out to us to become a patron. For more information, visit https://klubworks.com/patrons.