Check out these three high-risk high return investment options

Check out these three high-risk high return investment options

by 5paisa Research Team Last Updated: Dec 13, 2022 - 02:08 pm 16k Views

Everyone wishes to earn higher returns and is also comfortable with the higher risk that it comes with. In this article, we would be sharing with you three high-risk high-return investment options. 

Almost everyone is in the search of higher returns. This is the reason at times we see investments shuffling between direct stocks and mutual funds. Although this is again a bad strategy that might result in an undesirable outcome.  

Nevertheless, whether you invest in stocks or mutual funds or any investment avenue, understanding risk is important. Historically it has been observed that there is a direct relationship between the risk and return. 

Hence, a higher return is bound to attract higher risk. However, we believe that having an optimal asset allocation is important as this will help you create a risk-return profile that matches your tolerance level. 

Having said that, if you are someone who is quite adventurous and have a high-risk tolerance level, we have three investment options for you. These investment options come with a high risk – high returns profile. 

Revenue-based financing

In revenue-based financing (RBF), investors provide capital to the company and expect returns which is a certain percentage of the company’s revenue. Typically, corporates or young start-ups make use of such financing. There are a lot of platforms available in the market that makes RBF possible. Here investors can invest as low as Rs 50,000 per transaction.

Peer-to-peer lending 

Peer to Peer (P2P) lending is nothing but a way for any individual to access credit directly from other individuals or investors without any middleman. Only the Reserve Bank of India (RBI) approved platforms are allowed to operate in this space. You can invest via this route for as low as Rs 5,000 and the upper limit set by the RBI is Rs 50 lakh.

Fractional real estate

Fractional real estate refers to a concept where like-minded people collectively own a commercial property. Fractional real estate splits the cost of purchasing a property into several fractions. This helps investors in owning a good portfolio of real estate, without actually owning the entire property. As an investor, you become a fractional owner. Here you can invest as low as Rs 20,000. 

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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