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7 Investment Options Other than Mutual Funds 2022

What do you usually look for in an investment? Do you prefer a high return providing investment or one where your funds are secured? Whatever is your investment preference, you should invest accordingly. While Mutual Funds are one of the preferred investment options, they involve market risk. Although investing in Mutual Funds is a good option, it might not suit the requirement of all investors. This blog talks about investment options other than Mutual Funds that can help you achieve your investment objectives.

Different Investment Options Other than Mutual Funds

Every investment carries a degree of risk. But those investments that provide higher returns always carry more risk. Similarly, Mutual Fund investments depend on the market forces. Hence, you cannot predict their returns with ty. While some investors want higher returns than mutual funds, others aspire for secured investment options. So, here are 7 popular investment prospects other than mutual funds.

1.1 Equity Shares

Talking of alternatives to mutual funds, equity shares strike the mind instantly. Equity investments refer to the buying and selling of stocks that are listed on a stock exchange. You can easily trade on a stock exchange through a Demat Account with your broker.

Equity investments can definitely give you much higher returns compared to Mutual Funds but, they carry a huge market risk that might even lead to heavy losses.

1.2 Government Securities

Government securities are debt instruments issued by the government to raise capital from the public to meet their project requirements. G-secs include securities like government bonds, sovereign gold bonds, etc.

Although they carry low risk, the return on government bonds is also less. So, if you are looking for a low return but secure investment option, government bonds can be your go-to investment.

1.3 Bank Fixed Deposits

A fixed deposit is a debt instrument offered by banks and NBFCs.

Due to low risk and low returns, FDs are most suited for risk-averse investors. They can help you safeguard your capital and also earn a steady interest.

1.4 Public Provident Fund (PPF)

A PPF is an investment cum tax saving instrument

It is a good alternative way to invest money for those who want a safe and secure investment option that pays a fixed rate of interest. But, PPF investments are illiquid due to the lock-in period and limited withdrawal permissions.

1.5 Real Estate

Real estate investment means purchasing a property other than the one you live in.

Although real estate can provide high returns, it requires a considerable amount of investment. If you can afford to block your capital, it can be an alternative to mutual funds in India.

1.6 Gold ETFs

Gold ETFs are the dematerialized form of physical gold. The price of Gold ETFs reacts to the market price of physical gold.

While Gold ETFs can provide good returns, they carry market risk and lack diversification.

1.7 P2P lending

Peer-to-peer lending is one of the best investments other than mutual funds.

P2P lending can provide a high return opportunity with moderate risk. Being debt-based, it doesn’t carry any market risk and can provide returns along with the flexibility of investment.

Mutual Funds vs. P2P Lending 2022

Mutual Funds pool the money from different investors and build bulk capital for investment. A fund manager is appointed by the Mutual Fund to manage your investments. They invest in both equity and debt-based securities. Based on their investment portfolio, they are grouped into debt, equity, and hybrid mutual funds. Alternatively, you can invest in P2P lending with the LenDenClub platform. So, let’s compare the investment prospects of Mutual Funds and P2P lending with LenDenClub.

 

2.1 Mutual Funds

Here are the key features of Mutual Fund investments and the drawbacks of investing in Mutual Funds:

 

2.2 P2P Lending with LenDenClub

While Mutual Fund investments look lucrative, investing your money in P2P lending can provide the best returns at moderate risk. Here’s how LenDenClub empowers your investments:

P2P lending with LenDenClub provides the best investment other than mutual funds with all these benefits. It carries a lower risk and provides regular returns over the investment tenure. So what are you waiting for? Register Now to start investing!

 

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