I have been investing in stocks, mutual funds, bonds, Ulips, etc. I also want to invest in alternate investment options such as wine, coins, precious metals, etc. How can I invest in them? Are there any caps such as minimum investment, holding period, etc.?
Prableen Bajpai, Founder, Managing Partner, FinFix Research & Analytics says, "Avenues such as art, antiques, wine, hedge funds, private equity funds and
P2P lending are collectively dubbed as alternative investments. Each of these
alternative investments has a different ticket size, risk, mode of investing and regulatory framework. For example, an investment in startups, early stage ventures, hedge funds and PIPE funds is possible through Alternative Investment Funds (AIFs) which are governed by Sebi regulations. Select firms in partnership with foreign-based portfolio management entities allow investing in wine. But it is limited to sophisticated clients. Investing in antique or
art is done at auctions or through dealers. Among alternative investments, P2P lending is a newer segment offered by online platforms and is regulated by the RBI. Overall, most of these investments offer a high risk-reward relationship, come at a very high ticket-size (other than P2P lending) and are thus limited to individuals with high and ultra-high net worth. Alternative asset class investments are not publicly traded, have a limited market with lesser known regulatory framework and thus you must enter them only after understanding all the risks involved. Overall, the traditional asset classes—equity, debt, cash, gold—are sufficient for a retail investor’s portfolio."