We all have heard about inflation. This inflation keeps on decreasing the value of our savings. We all love to keep our savings in banks in the form of FD (Fixed Deposit) and think the value of it will increase by earning interest. But in reality, value of your savings is decreasing as inflation rate is higher than the interest rate on your Fixed Deposits. Who are paying taxes, for them, value of savings is decreasing even more as they have to pay tax on their interest income. Therefore, we need to look for options to invest our savings where returns are more than the inflation rate. But nothing comes for free. If someone wants higher interest rate, he/she will have to take higher risk. There are many options of investment available. All are having different risk and return. Most of the people aware about only few options like stock market, mutual funds, corporate FD, NPS, PPF, etc. Some people even purchase insurance plans as investment plan (which is big mistake).


Investment options mentioned above most popular among general public. But there are some Alternate Investment Fund (AIF). Most of us have never heard of it. These are the investment options generally available to wealthy people as it requires high investment. Below are some of the examples of AIF:

1. Equipment Financing – Companies need different type of equipment on lease for running of their business. For example, transport company may need trucks for business. Some companies prefer to take these equipment on lease instead of buying them. Buying these equipment and leasing them to these companies is what is called equipment financing.

2. Inventory Financing – Fulfilling short term requirement of inventory financing.

3. Fractional Real Estate – It is owning a right of Real Estate Commercial Property. But as name suggests, you only own a fraction of total property.

4. Real Estate Investment Trust (REIT) – It is a mutual fund based on Real Estate Commercial property. These can be purchased from stock market itself.


Above are non-traditional investment options. Earlier these options had higher investment requirement. But now with the advancement of technology, some new companies have come up with the option of starting investment with a very small amount of INR 5,000. What these companies are doing is accumulating funds from small investors and investing in above non-traditional investment options. These companies are providing a very good return. Return on these investment options is generally more than 10%.


Some of the companies providing services in AIF are below:




Please read thoroughly investment option related risks and then invest.