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2018-03-07 17:14:37

Alternative Investments

Alternative investment is an investment which is not one of the traditional investments asset type [Capital Market, Real Estate Market and Bullion Market]. Alternate investments refer to those investments which tend to have a higher risk and lower liquidity, and may be differently structured compared to equity and debt securities. Alternative investment is customized or off-the shelf Structured Products which includes the following.

PMS (Portfolio Management Services)

Portfolio Management Service is a professional service offered by the SEBI registered license holders to fulfill the investment objectives of various investor classes. Each PMS follows a unique theme. The Investment solutions provided by PMS addresses the needs of select clients (i.e. Individuals or Institutions entities with high net worth) through focused portfolios; which aim to deliver consistent returns. Thus, our Portfolio Management Services are professional management of your investments to generate wealth. It relieves you from all monitoring hassles while giving you the benefits like regular reviews, strong risk management flexibility; which makes it an ideal investment avenue for high net worth investors

Artham has a tied up with recognized PMS entities to provide various type of themes in PMS.

Derivatives and Structured Products

A derivative refers to a financial product whose value is derived from another. Derivative is always created with reference to the other product, also called the underlying. A derivative is a risk management tool used commonly in transactions where there is risk due to an unknown future value.


Structured Product (SP) is a hybrid investment instrument, which is used to improve the return on a fixed income or an equity instrument while reducing the risk on the product using a derivative instrument as insurance on the downside. The layer of derivatives gives it a flexibility needed to blend with a portfolio and enhance its risk to return performance while matching an investor’s objectives. High-risk, high-reward SPs can form a part of the ‘Equity Allocation’ while its lower risk designs can be plugged as part of the 'Debt Allocation'. This is probably the only instrument which requires minimal human intervention during the course of investment post the designing stage. Hence it’s a passive strategy which is Mechanical in nature.

The tenure of these products is around 3.5 years with a minimum lock-in period of 1 year. There are mainly two kinds of structured products. Debt Structured Product and Equity Structured Product:

Artham has tied with leading broking firms for offering you solutions related to Derivative Structured products.

Angel Investment for Start Ups

Angel Investment is investing in a start up firm to support the entrepreneurs through the early stage of the startup firms. Thus Angel Investors focuses on supporting the start ups take their first step by injecting capital for startups in exchange for ownership equity or convertible debt.

Real Estate

Real estate investments may be structured as income generating or growth oriented investment. Income generating investments focus on rental income; while growth oriented investments seek to benefit from value appreciation over time. The real estate growth is aligned to economic cycles, as real estate growth has a high dependence on money supply and credit availability. Real estate that generates income or is otherwise intended for investment purpose rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different than those for residential real estate.

Precious Metal

Indians are among the largest retail buyers of gold in the world. Gold is mostly bought by central banks as part of the reserves they like to keep. Indians culturally buy gold jewellery as gifts and give-away during weddings and religious ceremonies, gold coins as savings and long term assets. Even lower income groups buy gold in small quantities, using them as collateral to take loans when in need. Investment in gold has the potential to beat inflation over a long period. It is a safe haven when economic growth is slow and traditional asset classes such as equity and debt are under-performing. As an investment, one can purchase it as coins, bars, jewellery, or through mutual funds known as gold ETFs (Exchange Traded Funds). However, the best way to invest in gold is using gold exchange traded funds.

Commodities

Commodities have gained acceptance in strategic asset allocation only in the recent years. When investors seek to move beyond the traditional asset classes, they look for asset classes with low correlation. They also seek hedge against inflation, attractive returns and diversification benefits when traditional asset classes under perform. Commodities have emerged as a sought after asset class in this context. Commodities have an inherent return that is generated based on their demand and supply. Investors can earn such returns both by a passive index replication and from active management of a commodity portfolio.

Private Equity and Venture Capital:

‘Private Equity’ consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet.
‘Venture Capital’ is financing the new or growing business having high long term growth perspective. Though providing venture capital involves high risk for investors who put up their funds; the returns on such investments are capable of giving impressive returns, if invested in the right venture. The returns to the venture capitalists mainly depend upon the growth of company.

‘Private Equity’ Art objects, collectibles and precious stones are costly and illiquid investments. These require lot of knowledge in these products and one really has to know the market for these products to be able to buy and sell these products. Chances of being cheated are high.

Offshore Investment & Insurance

An Indian individual investor is allowed to invest up to Rs. 1.5 crores anywhere in the world per year.
Offshore Investments involve investing your money outside India. Investing overseas provides you with more opportunities to explore wider range of markets spread across the globe, which gives you an advantage of growth in emerging economies and businesses in various foreign markets.
Hence Artham Solution considers diversification through offshore investments integral to long-term wealth creation, because it offers a range of investment options across all asset classes. Artham supports the investors in adding offshore diversification to their portfolios by helping them to take informed decisions while providing suitable execution platforms.