Power of Alternatives in Debt

 

 

Investors would be well placed to give a place to new Alternative Debt instruments like P2P Lending Platforms, Invoice Discounting Platforms, Secured Real Estate Lending Products, and Venture Debt AIFs.

These will serve as a good diversification to traditional Debt products like FDs of Banks and Corporates, NCDs,s and Bonds of Govts and Corporates.

P2P Lending--The yield in the P2P products starts from 8% to 9.5% for zero lock-ins, 9.5-11% for a Year’s Lockin which beats the returns from traditional Fixed Deposit products. One might argue that Fixed Deposits have a Rating and P2P doesn’t have a rating. Well, we do have a P2P product that is rated and yet offers better returns than traditional fixed deposits.

To know more connect with us at www.atharvawealth.com or get in touch with our team at 9029005170/859136299

Invoice Discounting Platforms – This is a short-term product offering anywhere between 10-13% per annum returns. The typical duration of these products starts at 90 days and goes up to 180 days. The platform does the evaluation of the Vendor based on various parameters which include the Business Model, Track record of past payments and performance of the goods supplied, Returns of Goods by the Vendor, and Liquidity position of the vendor amongst others. From an Investor perspective the Risk is mitigated as products are very short term 90-180 days, diversification can be achieved by Investing in multiple vendors and through multiple platforms. Needless to say, we don’t recommend investing all your debt funds in a single product as Diversification is the most important underlying principle while managing Investments. We at www.atharvawealth.com offer this investment avenue through various leading platforms and in addition to the evaluation by the platform owners our team also vets the deals amongst the available deals.

To know more about how Atharva Wealth can add value to your Investment Portfolio write to us at devang@atharvawealthc.com or feel free to call on 9029005168/859136299.