5 Fixed Deposit Alternatives | Upto 20% Returns | Alternative Investments for Regular Income
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- เผยแพร่เมื่อ 20 พ.ค. 2024
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We often look to a fixed deposit, corporate bond, PPF or other debt based instruments for regular income. However those fixed income avenues offer similar returns and come with the same level of risk in terms of interest rate and default. In this video, I shall present 5 different alternative investment products that can diversify your fixed income portfolio & the risks associated with it, in addition to potentially offering a higher rate of return. In many cases, these alternative investment funds offer upto 2 times higher returns than a fixed deposit and should be considered as an alternative to fixed deposits. I'll be discussing 5 products in this video - P2P lending, Fractional Real Estate, Asset leasing, Senior Secured High Yielding Bonds and Invoice Discounting
👉 Video Chapters:
00:00 Alternative Investment Options in India
01:18 P2P Lending
04:25 Fractional Real Estate
07:42 Asset Leasing
10:00 Senior Secured Bonds
14:03 Invoice Discounting
16:25 Shankar's Viewpoint
👉 Some Useful Resources/Readings:
‣ Article in ETPrime on Alternative Investment Options: economictimes.indiatimes.com/...
‣ Article by Capitalmind on MLDs: www.capitalmind.in/2021/09/ho...
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#alternativeinvestments #fixeddeposit #shankarnath
Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented
Return of capital is more important than Return on capital
क्या बात है । आपने सही कह दिया ।👍👍
Good 1
That's the bottomline statement..very true😂
but even if you keep your capital in a vault , it is still eroded and thats by design, so what you gonna do?
Pls explain wid an example
Great presentation..I am investing 40% of my capital in IPO’s and hv discovered that one can easily generate 8-9% returns on allotment(if lucky) or buying a share with good credentials (like IREDA)
The risk is minimal and you don’t hv to pay anybody commission to handle yr account albeit there will be STT etc to be paid on share sales..it’s still profitable.
P2P Lending is immature industry. The NPAs in the industry is over 20% & there are many loop holes the way the NPA every P2P platform calculates. In case defaults, these guys don't even do anything as it's conflict of interest for them & these companies do not want to come in news. Many defaulters like Gaurav Kapahi from Delhi, takes multiple loans from multiple P2P Lending platforms & defaults. Noone is able to do anything. Many a times it's observed that P2P firms showcased wrong information of the borrower knowingly so they can get loan faster as they took much higher processing from them. Also many a times, the loan is paid by borrower but is shown as defaulter by P2P firm. RBI doesn't do anything about these platforms. Lendenclub is the biggest fraud amongst all.
Hi, this is serious. Thanks for this note. Has someone taken this up i.e. published it in an article or explained in video? Maybe Moneylife or The Ken might have done an expose. If yes, kindly share the link.
I am investing in P2P for the last 3 years. My yield is just 4% per annum. They claimed much more yield during investment. Pathetic and never invest. Lendenclub is big fraud.
@@rajasreedharbabu3840 Thanks for sharing your experience
Agree to ur points,P2P is diaster for any investor
@@shankarnath do check out Monexo, and how they work with RBI to remain complaint and have about 0.5 - 1% NPAs
Your videos are very elaborative Shankar and quite different from the other mass youtubers.
So nice of you. Glad you like them, Mitul
One word, Amazing!
Great video again that is very useful. My personal gratitude to your efforts and kind intentions. Thanks a ton 👍
You're very welcome Dipankar ji. Very happy to know you are liking the content. Do share it with your wellwishers and help me grow this channel. Thx!
Wow..The effort that you have put is really appreciable. The information that you always bring up is what generally people often look for and it is very difficult to gain such knowledge. These videos at least help to rule out certain financial options in some cases. Great effort
So nice of you. Thank you Prudhvi ji, glad it is helping you in your financial journey
Kudos for such quality videos.. ! Undoubtedly the best finance TH-camr at the moment ! No nonsense , no bias .. to the point !
Thanks a ton, glad you liked it
Excellent sir. Though the entire fixed income universe seems to be complicated & full of jargon, you have literally simplified it. So, one can take some small risks in investing a fraction of their portfolio to earn those extra brownie points. Thanks a million. Looking forward to such videos.
You're most welcome. Glad you found it useful, Mr. Gowrishankar
Nice collaborated and no-nonsense video, thank you!
My View on Jirraf (Opportunity Investment!)
You normally invest 95k to get around 1.5k to 3.5k for 30-90 days holding. If we do the math as happened in my case if I take an average of 2.5k, 2.5k * 30 = 75k. So if there is one default in every 30 investments you stand at no financial gain. I took 75k because 20-25% of the investment amount is reserved in any default case they will return it as the first cheque in most cases. So, to simplify, if there is no default, then 25-28 investment will fetch you 90k-1L; otherwise, 1 default in 25-28 investment will bring you down to 0 gain.
Thanks for your appreciation and for sharing your views
Balanced Advantage Fund is easier and safer way to generate 10% pre tax. If the Fund is at least 65% in Equity then LTCG will be 10%. Thus post tax will be 9%.
which Balanced Advantage Fund ? Can you shed some light on it?
@@pranavmahajan4190 ICICI PRUDENTIAL EQUITY & DEBT FUND (DIRECT) SBI EQUITY HYBRID FUND (DIRECT) MIRAE ASSET AGGRESSIVE HYBRID FUND (DIRECT) you may check out the 1yr 5yr and 7yr returns
On top of this, a general advice to all my friends, don't invest in any platform where they don't have a physical location. For example if 12% club becomes bankrupt there is no way you can file an FIR or complaint against this agency.
I just split my fixed income in a ratio of 75-25 where 75 % goes in physical gold which I can used as emergency and 25% goes into FD & municipal bonds where interest income is invested again in gold as worked so far and it is beating the market over a 10 year period. Fixed income investing is much more important than equity investment
Thanks for sharing
The major benefit is that you can avail gold loan which is lowest and can be used in various investment apportunities which comes market crash , stressed real estate deal you never know . And I can easily paired of making charges through those profit.
Physical gold ?
@@shankarnath Shankar Nath be like "why u r even watching my videos" after hearing 75% income is used to purchase physical gold 🤣
@@Pantera9527 well he said "thanks" ;)
I am using Cred Mint since Dec 2021 and have earned 9% regularly. Take out the interest every month. I understand the risk but as per Cred the money is distributed with minimum of 20 lenders so even a hypothetical high default rate of 5% making it relatively safe. So far so good is all I can say !
May i know how to use cred mint?
@@vinayakrishna7924 if you are eligible you will get the option to use cred mint.
Thanks for sharing
how much amount u have invested till now@Siddhesh..
Do read the fine prints of the agreement dear. It says CredMint is just a coordinator. The actual money is holded & invested by P2P Lending partners. In case of default, they would only provided extended support which is very loosely written & can have different meanings. Just see in case of default, what happens, no specifics are shared. Trust me defaults aren't 5% & much higher. Also, the risk to reward ratio is bad. They earn 24-36% on your money & you get 9%. Doesn't look fair to me.
Excellent video.... Making complex financial jargons understandable to a "know nothing investor" is shankar sir's USP🙏
Glad you liked it. Thank you Lokesh
Very informative video in diversifying ones debt portfolio, albeit with possibly increased risk. I understand that MLDs are also of 2 kinds - principal secured (listed) and non-principal secured (unlisted). The recent budget has tax classified listed MLDs as STCG. Would like to have a dedicated video on MLDs. There are many NBFC players Anand Rathi, Edelweiss in this space.
Glad you found it useful.
My p2p investment experience - before 2020, i invested quite some amount in p2p lending platform and enjoyed high return ( (upto 35%). But Corona changed everything, everything crashed, the returns discontinued. Many of the borrowers defaulted and declared that they no longer can return the borrowed money. Later one year back , I got back all the remaining principal amount which was pending from that platform with out the interest amount. I would say i was lucky to get back my remaining principal amount. I hope this information helps.
Yes, it does Sauvik. Thanks for sharing.
LIQUILOANS is running on subvention of interest.
I lost most of principal amount after covit especially the short term loans.
Very good information
Which p2p was that? You are lucky. I don't know how the p2ps get away with lying and showing low npa. I have lost nearly 30% of my portfolio to npa, write offs etc.
Thanks for the vdo. Really informative, have tried rhe 12 percent club. Working fine till now. Very much interested in reits. Invoice discounting looks good . Loved the term opportunity portfolio.
Most welcome Sandipan & thanks for sharing your experience.
Woww - This is such an excellent video. Nicely researched and covering wide range of aspects. This kind of videos are missing in the current space, where everyone creates video on similar financial topic again and again, by just changing the wording.
Not a commenter generally - but couldn't resist as lot of points covered in a quick time.
Glad you liked it! And please comment more esp. if you have something good to say to the content creator. The math is in the commentor's favour afterall it takes 2 minutes to write a comment .. a video like the one your liked takes me over 2000 minutes to create.
One of the best videos on the topic. Clarified all factors. Thank you sir.
Glad it was helpful! So nice of you
Thanks Shankar.. it was nicely explained without any bias…Got learn some new avenues like P2P lending, asset leasing, etc.. I have been an investor with Wint wealth n so far experience is good..
Most welcome, Jayesh .. and thanks for sharing your experience with WW
Please dont invest in P2P.
subscribed post gone through initial 5 mins
you got me in 😊
Wonderful video. Appreciate the efforts, systematic and wisely presented the facts on the topic. Great efforts evolved. Thanks.
So nice of you. Thank you so much!
Extremely informative post. Keep posting such great quality videos! 👍
Thank you
Thanks for the knowledgeable information Shankar. I like ur way of not following herd and sharing a seedhi baat no bakwaas knowledge. Keep up the good work sir 👏 👍
So nice of you. Thank you very much for your kind wishes
For regular income I'm investing in Reit and Invit.
Thank you Shankar and your team for sharing such a delightful, intriguing, insightful and thought provoking videos over such wide range of investment topics every other time, with the right touch of unbiased views and analysis in backdrop to support! It’s quite clear and evident from the content richness of your videos and framework you follow in each video, the level of efforts you and your team puts in! In India (unlike equity market) the debt market seems to be not that broad and accessible to the retail investors like to our counterparts in US, China, UK etc. May be because majority of bonds are available on OTC. If it makes sense, can you please also create a video in your style on investor options, risk vs reward analysis, trusted platform/options available beyond debt MF etc. to explore this area more broadly…
Thank you Himanshu for your kind words and endorsement of my content style. I am keen on building this channel into a community of learners and having two sided conversations .. and hopefully it can branch beyond investing and get into case study development, passive income, second income, better goal planning etc.
Yes, I can certainly do that. I did a video earlier where I explained how my equity portfolio is designed. The debt part of my MF portfolio (until now) is a mix of short duration funds and target maturity funds -- so not much to say there. I also don't complicate my matters by wondering about YTM etc. as return of capital is more important than return on capital in the case of debt. Allow me sometime to build and present something more concrete on this.
Thanks again for the encouragement
Have been using 12% club and trade cred from past 2 years , no issue till now getting returns around 11-12 %
Though i have kept the limit to 15 % of my total fixed income
As a tool to bring my overall fixed income yield to 8%
That's good to know. Thx for sharing
Thank you Shankar bro! It's a great content, given the market conditions and economic situation which we are going through now. I just picked few weeks back Muthoot fin corp bond AA rating. Thank you once again ❤️.
My pleasure
moral:
every investment has risk. diversity is the key.
Good work... What a term "Opportunity portfolio" one coined. Love this video beautifully designed, developed, explained, and executed. Waiting for the video of your future investment in opportunity portfolio.
Thanks a ton
Thank you very much. Glad you found it useful. Yes, it's an important one so I reiterated that in my video on asset allocation aswell. The root of your portfolio tree has to be strong although it won't bear any fruit, it will provide the nutrients and make it happen
Excellent videos providing just the right perspective with objectivity. Thank you
Glad you enjoyed it! Most welcome
One of the best video editing I visit this channel because of Shanker narration
Glad you like the presentation and our editor's work. Thanks!
Another Gem from Shankar Nath. Great Job!
Thank you Ravi
Hi Shankar, nice informative video.
Ive invested in invoice discouuntung since last 1 year, ans its doing good.
Thank you Nikhil for liking it & for sharing your experience with inv. discounting
Great, How would you compare the risk vs reward return proportionality and are they governed and insured by SEBI or FDIC/NIPC insured like in the US
Super coverage as usual sir
All your videos are too too good. Thanks Shankar. Really eye opener. I am an avid follower of your videos. You deserve 1M followers
Thank you very much Senthil. Happy to know you are finding the videos useful and relevant
People like you are soothing to eyes, extremely knowledgeable while other half learned you tubers are misguiding people
Thank you very much. I'm glad the content is resonating with you. Glad to hear this
Well researched, thank you as always
My pleasure!
Superb video sir. Very informative Please do more videos like this
Thank you very much
An excellent session Shankar. Amazing one.
Thanks!
Fully second your views. Grip n wint are good i would say, thanks for listing their competitors too. There is golden pi as well but their min ticket is 2l
Glad you found it useful
Excellent presentation and information. I love the fact that you present a wealth of information in simple terms that anyone can understand. I wanted to know more about platforms like Growpital and the risks involved. There are many ‘sponsored ’ videos out there. Appreciate it if you could do a video on it. 🙏
Thank you for your kind appreciation and suggestion
wonderful clarity on the topic. Could not avoid subscribing to this channel. Got a lot of knowledge content in this video.
Welcome aboard! Happy to know this video helped
I have been using GRIP from past 1 and half year mainly for Inventory Financing and the results are good(8%~10%). I invest in short term plans which will be around 3-4 months and cross verify the cash balance/burn of the company and then invest in it.
Thanks for sharing. Any issues you faced so far?
Just to be clear.. you mean 8-10% APY returns in which case for 3-4 months the yield will be between 3-5%?
@@dtfdtf7860 Yes, you are right. It's like a 1 week fixed deposit. The interest rate card will say 4%, but 1 lakh will not become 1.04 lakhs in just one week. Same concept
Pranam Shankar Guruji!!!
12% club is regularly delaying the payout. And the withdrawal fails multiple times. You get no interest from the day of requesting withdrawal, even if it fails.
I saw this pattern increasing, and it seems that they are filling their gaps by doing this. To me, it seemed like an early warning sign of a catastrophic failure in the future, so I cashed out my money from it.
Thank you for sharing this video and also sharing your thoughts around each. I did find wint wealth good and had tried in it and find it useful ..apart from that fd and debt fund is all I have .
Most welcome
People say equities are risky..
But investing in equity through even a half baked mutual funds given enough time.. virtually all investors would have gotten thier money back with atleast 6 to 7 % cagr .
Compared to the thousands who keep loosing their Capital to high interest schemes..
Net net one is far better of with a 50 50 allocation to secure fixed income at 6 to 7% return and large and mud cap equity through mutual funds..
In any 5 to 7 year rolling horizon you are almost sure if making 10% cagr in a tax efficient way with safety.
Thanks for putting so much effort,Was very worthwhile 👍
My pleasure. Glad you liked it
Thanks for the video.
Can you pls share your thoughts on gold leasing (Safegold) and third party companies like myjar.
Most welcome. Sorry, I have no idea about gold leasing
For the fixed income portfolio, I am going with the senior secured corporate and state guaranteed bonds (50%), FDs(20%), gold(30%). I have gained conviction on the bonds mentioned above but able to built the conviction on any of the 4 options discussed other than senior secured bonds because of the credit risk and the time consumed to gain the fixed income which is at risk. It is better to deploy such money to blue-chip equities with less risk.
I am still researching a bit to gain more conviction on REITs in terms of the returns provided. It will be of great help if you could add up on the REITs video in terms of decision to buy REITs over Residential/Commercial/Industrial real estate in terms of return and default risk.
Thanks for sharing. In the REIT videos, from what I had then discovered, the market-price-to-NAV seemed a useful way to check for over and undervaluation. Unfortunately some changes in the budget requires us to rework as REITs like Embassy are projecting a big drop in distribution which will affect demand (and therefore share price) for the product. I'll circle back once I find something worthy
Nice video, informative and thought provoking. Thanks for making this !
Glad you liked it!
Sir you are a amazing talent, 1st time i viewed this video, I am really happy to hear the professional way you give this video presentation and your voice is absolutely suits to the content.
I love to see you soon joining CNBC-TV18 and doing more videos, interviews of big mutual fund - fund managers on the
So nice of you. Thank you so much 😀
Well researched and the efforts put in. Really appreciate the way it has been presented
Thanks a ton. Glad you liked it
SIr your videos are very Informative and I want the knowledge to be spread across most of the population for that I would request you to please Include Hindi as well or make a Hindi channel altogether so that people who understand the concept a little easier.
Thank you very much. I have plans to do Hindi content but as a single person it is currently difficult to make videos in two very distinct languages without compromising on video quality which will not help anyone. I will circle back once there is a viable solution or if you have a solution, pls do let me know. I want to explain in Hindi but without compromising on content research time
The video gave indepth insight into some of the other investment opportunities with their pros and cons. Thank you.
Most welcome. Glad you liked it
Nice explanation 🙏👏. Which is white coloured desk top behind you on your desk?
Thanks.
Do you mean the book? There are two of them in white:
1. The Most Important Thing by Howard Marks
2. The Almanack of Naval Ravikanth by Eric Jorgenson
Hi Shankar,
I have invested in p2p like Faircent, Lendbox and have about 15% npa in Lendbox. Faircent is less than 2% npa. Invested in wint wealth and got timely repayment of interest and principal. Invested in grip and no issue at all in getting interest and principal.
Response from Lendbox is standard answer and seems they are helpless. Overall I invested about 4 lacs in each product and did not made loss.
Thanks for sharing, Sunil ji
@@shankarnath do you provide any financial services for nri or hni
@@sunildhanuka Not presently
@@tkdevlop I checked with their customer service and they said we are trying to recover
Your Videos are "to the point". Nice job.
Glad you like them!
Great content, as always.
Much appreciated Ranjeet
Another great video loaded with Info, Info and Info. There is no forth in your video that will not be useful to the viewers 😊😊
Thank you very much. Yes, the idea is to present information & analysis so that viewers can decide for themselves. Esp. with investments, information is half the battle
The warning is the best part in this video
Thanks for the amazing video, Shankar bro
My pleasure
I have invested in Strata and Myre capital both are good and giving me rent on monthly basis.
Thx for sharing.
they measure in such a way so that your default should not look default, I lost money in almost all platforms, lend-box, i2i,faircent, lenden, nothing earned and lost some amount also money came back in 2-3 yrs, so liquidity is problem
Thanks for sharing you experience.
Same here. I thought I was being smart by diversifying between different p2ps, but they all defrauded in the same way. Now looking back, I see how the model itself is so flawed. Just think about it, Indians being basically crooked minded, here were p2p companies, handing out lenders' money with no risk/repercussion/consequence to borrower if he takes the money and runs. Once they caught on to this, they came forward in hoards. Company got its fees, borrower got his free money lottery, lenders were the fools!
I find your perception quite unbiased. Thanks for the valuable advice.
Glad it was helpful!
Hi Shankar, Once again a very informative video coming from your end. I would like to know if you have any plans on making a video on the textile sector, similar to the ones you made on the cement & hotel sector. Thanks in advance
Thank you Raizan. I am taking up sectors one by one & the next one in my list is an important sector -- banking
I have came to know first time these information. Although no money to invest currently
My experience with grip has been really good.
Thanks for sharing
Super informative 👍
Glad it was helpful!
Thanks. So in short, contend yourself with max 7% with safer instruments
Hi Shankar sir, please make a video on Debt Mutual Funds like how to select one? Currently, I keep my fixed income in cash and FDs, so willing to explore Debt MFs, PPFs etc
I'll try. Thanks for your suggestion
Insightful Shankar
Thank you!
My experience with asset leasing (Grip) for last 18months is pretty good..
P2P lenders like Finzy are having very high levels of NPA (3-4%) not worth even to think
Bond portfolios like Wintwealth are decent enough
Thanks for sharing, Praveen
Finzy npa for me turned out much higher, more like 10%! I find so many loans written off. How can they do that?
I will stay with fd only looking at risk
Is building depreciation considered in fractional real estate ?
Which one you use? And can you also tell through which app?
Great effort & great video, moreover if I could pitch my opinion - anything above 12% return on any investment would raise red flags for sure. I mean why not? If these companies can get debt from the market anywhere between 8-12% why would they be offering 16-20% returns to individual investors? Second, anything that's non-regulated is a NO GO zone! I would give bonds some benefit of doubt considering the repayment priority, all other forms of investing (such as P2P, real estate) a big NO!
Thanks for your views and kind appreciation. I'm glad you liked the video
Can you make a video on gold lease which is being offered by safegold and gullak like platform.
More specific about safety of funds
Thanks in advance
I'll try. Thx for the suggestion
I have done cred mint twice. It was flawless and given me 9% fixed rate. But yes it concerns me. And therefore I am not putting my hard-earned money there. May be some extra crypto income can be deployed.
Thanks for sharing your experience and views
Return on capital is more important than Return on capital?! What does that mean?
I have invested in cred mint my experience is good till now
Thanks for sharing
Thanks your video is very high quality and honest information. please make video on your investment and your resons to check the risk and return justification also give details of your paid servics.
1. Most welcome, glad you found this compilation useful.
2. I have a video on how I have designed my equity portfolio in a different video. Pls have a watch: th-cam.com/video/bN5QdxY3RVs/w-d-xo.html
3. I don't offer any paid services at the moment
For the time being I will stay away from such investments. Good video👍
Thanks
I believe in corporate bonds from wint wealth giving 9-11%. 20% options may be risky. Goldenpi may be another option but not tried yet.
Thanks for sharing Sachin. I am yet to make up my mind from the context that mutual funds also offer corporate bonds but they spread the risk over dozens of bonds but in the case of these platforms, there is just one egg in that basket.
Good information for fixed income.
Glad it was helpful!
In liquiloans you don't invest directly to any lenders .any way to verify whom the money is lend to?
Great content Shankar. Can you also do a video on RBI bonds like T- Bills
Thank you. It's a very niche topic. What would you like to know specifically under T-Bills?
@Shankar Nath how did these work, is it good to invest and if yes how should we, what should be our asset allocation to these
Can these be used for long- term like pension or child education ?
How can it is mentioned on liquiloan mentioned IT IS RBI REGULATED?
Hi Shankar
Was revisiting this video as I was looking to allocate some funds. Would you be willing to share if you have tried any of these products and share your experience so far with the ones you have tried.
Thanking you in advance for your kind consideration
Hello. I have not tried most of these products (I mentioned that in the video aswell). My own debt-side portfolio is on the higher side so I'm not looking at fixed income products currently. I'll circle back if it changes in the future
Excellent sir
Many many thanks
I am using p2p finzy from 2018-19 it's going good...uptill now i got more then 12% ...
Thanks for sharing
@@shankarnath Not true. They too have very high npa, and write off loans, without intimation to lenders. Despite the model itself being flawed and unfair to the lender, company like RupeeCircle, never brought down its ticket size down from Rs. 5000, despite numerous requests. With ticket size of 1000 itself, I lost 30% of my portfolio to defaulters in other platforms.
All these mediums provide 3 to 4 % above FD rate; all of these mediums have a problem with liquidity; for example, you can take out a month from FD or equity anytime that you want, but I think the return of capital may be an issue. Rather than focusing on Fixed income, an investor can and are able to take a risk and effort it. should ideally focus on the growth of capital.
Please make a detailed video on SWP for senior citizens to ensure inflation proof income😂
Thanks for the suggestion
one of the best youtuber you are
Thanks for your kind appreciation
Nice but too much Risk involved I will avoid all
Great Info, congratulations, but advisable to have it in Hindi too.
Thank you very much. I'm looking at tools to convert my English videos to Hindi -- Aloud by Google is one such tool. It's still not released for public but once its ready, I'll want to test it out
But .....shankar you didn't said where do the investment to be done.... on safer side because every investment has a risk factor ......other than govt schemes or MIS
Thanks!
Thank you very much for this kind gratuity. Much appreciated