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India is on growth trajectory as Real Estate investment landscape is evolving rapidly, with several emerging opportunities capturing the attention of savvy investors. From traditional assets to cutting-edge financial innovations, the Indian market offers a diverse array of options that cater to different risk appetites and financial goals. Whether you are a seasoned investor or just starting out, staying informed about these trends can help you make better investment decisions.

Bonds for risk-averse investors

Traditionally, bonds have not been the go-to choice for Indian retail investors, primarily due to the high entry barriers and lack of awareness. However, recent regulatory changes have started to shift this dynamic. The Securities and Exchange Board of India (SEBI) has taken significant steps to make bonds more accessible, such as reducing ticket sizes and removing indexation benefits on debt mutual funds. These measures have positioned bonds as a more
attractive and viable investment option for retail investors.

The bond market in India now offers over 17,000 options across 14 categories, providing ample opportunities for diversification. For risk-averse investors, bonds present a safer alternative to equities, especially in an economic climate where uncertainty looms large.

The recent peak in repo rates, which have remained stable for the past several quarters, has made fixed deposits (FDs) another appealing option. With interest rates reaching up to 9% for shorter-term FDs, banks anticipate future rate cuts, making it an opportune time to lock in higher returns.

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REITs and asset tokenization

Real Estate Investment Trusts (REITs) have become increasingly popular in India as they offer a way to invest in the lucrative real estate market without needing large capital outlays. SEBI-regulated REITs are now listed on major stock exchanges, providing liquidity and diversification for investors. These trusts pool capital to invest in income-generating real estate assets like offices, hotels, and retail spaces, offering regular income and potential capital appreciation.

Asset tokenization is one of the most exciting developments in the real estate sector. This innovative approach allows investors to own a fraction of a property through digital tokens, making real estate investment accessible to a broader audience. With SEBI's introduction of Small and Medium REITs (SM REITs), even smaller investors can now participate in the real estate market with investments starting from as low as Rs 10,000. This democratization of real estate ownership is expected to drive significant growth in the sector.

Is Bitcoin a good bet?

Cryptocurrencies, particularly Bitcoin, have become a hot topic of discussion among investors. Despite its volatility, Bitcoin has shown a decreasing trend in risk over the years while maintaining high returns, making it an attractive option for portfolio diversification.

With India witnessing significant grassroots adoption of cryptocurrencies, the legal framework around them has also evolved. For instance, the Prevention of Money Laundering Act (PMLA) now extends to crypto companies, ensuring better compliance and
oversight.

The introduction of Bitcoin spot exchange-traded funds (ETFs) globally has further fueled institutional interest in cryptocurrency. As a digital store of value, Bitcoin has gained
traction, especially during times of economic uncertainty. While it is a high-risk, high-reward asset, experts suggest allocating a modest portion of your investment portfolio—typically between 2-5%—to Bitcoin to reap diversification benefits.

Smart Beta Investing

Another exciting development in the Indian market is the rise of smart beta investing. Unlike traditional mutual funds, where a fund manager makes investment decisions, smart beta strategies rely on algorithms. These algorithms select stocks based on various factors, such as value, volatility, and momentum. For instance, an algorithm might analyze the top 100 stocks in India and select the 30 best-performing ones based on specific criteria.

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Smart beta investing offers a more systematic approach to portfolio management, potentially reducing human biases and increasing returns. This method is gaining traction among investors who are looking for a data-driven approach to investing without the need
to rely on a fund manager’s discretion.

 This article is written with inputs from Anand k rathi, co-founder of MIRA Money.

Disclaimer: This is the views of the analsyt. Jagran does not advise investing, please consult with experts before investing.

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