2021 was a true test of our perseverance. The Delta variant of the COVID-19 pandemic casted a dark shadow on the market and our daily lives while the more recent Omicron variant dampened the beginning of 2022 with the pandemic’s third wave. As things stand today, inflation is on the rise. This was triggered by several recent developments like the global chip shortage, disruptions in shipping routes, and Central Banks rolling back their interest rates to boost demand.
Despite these ups and downs, the economy gained traction through most of 2021 with confident businesses and increased consumer spending. Set against such a compelling backdrop, 2022 sure could be an exciting year for investors. So here are a few financial instruments and investment trends that you could look into this year!
Exchange Traded Funds (ETFs)
2021 saw a sharp rise in ETFs. The total assets under management in this category jumped from ₹ 2,30,000 crore at the end of November 2020 to ₹3,64,000 crore in November 2021. This points towards a 58% growth witnessed in a year in contrast to 29% growth in overall open-ended mutual fund assets. The appeal comes from low-cost options for retail investors who are digital-platform-savvy
Unlike traditional banks that offer in-person services, neo-banks are digital-first banks that are cementing a stronghold in the Indian personal finance space. They are basically fintechs that have tied up with traditional banks and are known to offer an array of services like instant investment option, budgeting tools, person-to-person transfer, etc at a lower cost than traditional banks.
Globalising your portfolio
Diversifying your portfolio by investing in international companies will help you leverage the growth in the global economy. One way to start off would be to take the Liberalised Remittance Scheme (LRS) route. This allows you to make international investments in assets like ETFs, mutual funds and shares.
Corporate Fixed Deposits
These term deposits offer a higher rate of interest when compared to savings accounts and term fixed deposits. You’ll find several NBFCs and companies offer corporate fixed deposits. These deposits are periodically rated by rating agencies to review the financial stability of the issuer. So look for high-rated corporate fixed deposits to reduce credit risk. This could help diversify your portfolio with debt investments.
Investing in equity shares that are not listed on official stock exchanges like the NSE and BSE can be a good option for long-term wealth creation and good returns. Investing in companies that have not yet gone public but have a healthy growth rate and the potential to become industry leaders can help you tap into shares that are yet to experience rally on listing. These shares are traded Over the Counter (OTC) and are also known as OTC securities.
If you are interested in investing in unlisted shares, get in touch with Unlistedkart. We’ve created a vast ecosystem of pre-IPO and new-age companies for HNI, investors, and retailers to create wealth. And if you are a company seeking liquidity for ESOPs, we could add you to our network of potential buyers to help you grow your business.