Interesting Investment Avenues: Emerging Investment Trends

Investment pioneers, assemble!

Let’s use this thread to collect the upcoming investment avenues and financial instruments.

Some of the recent trends in investing are:

  1. Mutual Funds: Especially Index Funds and with a lot more interest in passive funds, we are getting more and more options. Eg. Groww Nifty Total Market Index Fund
  2. ETFs (Exchange Traded Funds): Real-time, low-cost and convenient way to invest in a basket of securities.
  3. Smallcase / Wealth Basket: Investment advisory through recommendation of a basket of stocks/ETFs following an investment philosophy.
  4. PMS (Portfolio Management Services): Minimum amount to invest in PMS is 50 Lakhs but it is a convenient way to invest large sums of money.
  5. P2P Lending: Although it is a risky affair, but it is an interesting affair with interest rates in the double digits. Eg. Mobikwik Xtra, LiquiLoans
  6. Gold Leasing: Gone are the days where you buy gold jewellery and lock it. Now you can buy digital gold and you can lease it for some extra income as well. Eg. Gullak
  7. REITs (Real Estate Investment Trusts): Invest in real estate without having to purchase physical properties.
  8. Fractional Ownership of Real Estate: You can buy fractional shares of a real estate - especially commercial real estate. Eg. Starta
  9. ESG investing: ESG investing is gaining popularity in India as investors become more aware of the environmental, social, and governance factors that can impact the long-term performance of their investments.
  10. Wealth Management: Wealth management has become lucrative in India since the pandemic. Unlike PMS there is no limit and if you find the right professional help through financial/investment advisor or wealth manager, you can invest with your eyes closed on the basis of the advisor’s recommendations.

All said and done, the most important qualities for creating wealth are Patience and Discipline. Keep investing that monthly share in the right financial instruments and be patient for the money to grow.

Disclaimer: This is not investment advice. Please do your due diligence before investing. It is your money, so you know what’s best for it. :grinning:

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So Groww has started its maiden mutual fund offering - Nifty Total Market Index Fund.

What was interesting for me is Groww got the SEBI green signal after Zerodha, but came to the market with the NFO before Zerodha.

Also interesting is this comparison.

Comparing this with Zerodha’s mutual fund offering - Nifty LargeMid 250 Index, both have a history of beating Nifty 50.


So with more fund houses (Zerodha, Groww, Jio Financial Services/BlackRock, Bandhan, Helios Capital, Old Bridge Capital), the mutual fund industry is becoming interesting.


"Total Market Index Funds

You want to own them because they give you exposure to the stock market without any filters per se. You get exposure to the entire market - nearly 100%.

So, while you miss out on the true brilliance of say 10% of the fund managers (actively managed funds), you also avoid the not too brilliant performance of the 90% of fund managers out there.

You may also miss out on the once-in-a-decade rally in small-cap funds (market cap based funds), but then you also avoid the 70% drawdown.

Also, you may miss out on the decadal rally in say IT funds (sectoral funds) but then you will also avoid the under performance when it comes.

You get the picture.

Now, before you want to own them, be sure they fit into your asset allocation. If they don’t, skip! If it does fit, start small, and build up over time (dollar cost averaging). If markets crack, add to your position.

Finally, do remember, these funds invest their monies in the stock market. Just because they are index funds does not make them low risk per se. They remain high risk assets.

Simple. That’s how you need to think about the Total Markets Index Fund. Not at all complicated."


Reasons why the Indian P2P lending space is unique and relatively safe for investors:

Well-regulated by RBI
Middleman replaced by technology which expands its outreach and reduces cost
No guarantee of return but efficient risk management through diversification
Exposure limit in place to reduce the risk investors
Cutting-edge technology in place for credit risk management
RBI’s cautious approach strengthens safety net
As the industry matures regulations are likely to evolve further


Zerodha Nifty LargeMidcap 250 Index Fund

This open-ended scheme tracking Nifty LargeMidcap 250 Index, will invest your money equally between the top 100 large companies and the next 150 midcap companies.

The fund might be suitable for investors who are looking for investing with a long-term horizon in mind.

Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund

This is also an open-ended scheme tracking Nifty LargeMidcap 250 Index. The fund also offers an add-on tax saving benefit. Investments made into the fund (upto Rs 1,50,000) can be deducted from your taxable income under the section 80C of the Income-tax Act, 1961.

The fund might be suitable for investors who are looking for investing with a long-term horizon in mind. Investors can choose to start investing with an investment amount as low as Rs 500.