Eight Investment Options With Higher Returns For HNIs

In recent years, high-net-worth individual investors have been seeking customised investment options. Their requirements and goals are different from those of retail investors. Thus, they also seek alternatives to conventional investment options, such as mutual funds and direct equity. This article will look at eight investment options, including traditional and modern, with higher returns for HNIs. They can choose the right option from the list based on their requirements and goals.
 

1.Fixed-Income Funds

Fixed-income funds consist of Fixed Deposits (FD), triple-A (AAA) Bonds, and Government Bonds, which can generate regular income with greater security for your capital. Investors who have a conservative risk profile can safely invest in fixed-income funds. Also known as debt funds or credit funds, fixed funds are the most popular investment options. 
 

2.Direct Equity

Direct equity investments are the second-most popular investment avenue, with greater returns but higher risk. If you can take the time to study the basics of securities and observe stock market trends, you can easily choose profitable securities with reduced risks.
 

3.Private Equity

Venturing into private equity helps HNIs broaden their investments. This diversification generates higher returns than the traditional stock market. However, it is important to consider that the returns from private equity can change based on performance benchmarks. Additionally, acquiring performance data for private equity investments could be difficult compared to publicly traded stocks.
 

4.Crypto Currency

Cryptocurrencies are known to be risky assets. However, the digital age focuses on decentralising most traditional establishments and professional setups. Investing a very small portion of your total investments in cryptocurrencies is recommended. Assessing the growth and trends of disruptive technologies, cryptocurrencies are considered to be the assets of the future. To begin with, start investing in cryptocurrencies such as Bitcoin and Ethereum. 
 

5.Gold

Another high-return-generating traditional investment avenue is Gold, which has significantly evolved through digitalisation. An investor can easily invest in digital Gold or gold-backed funds without holding actual Gold. Digital gold-backed investments guard against sudden financial market shocks.
 

6.REIT & INvITs

HNIs can gain exposure to the real estate industry by investing less and enjoying better liquidity. REITs are Real Estate Investment Trusts, and INvITs are Infrastructure Investment Trusts. Investors can expand their portfolio and generate a steady income through REITs and INvITs because SEBI has directed them to distribute 90% of their earnings to the unit holders.
 

7.Alternative Investment Fund (AIF)

Alternative Investment Funds (AIF) are modern investment avenues. Their asset classes include private equity, precious metals, real estate, derivative contracts, and more. If you have an investment corpus of crore and above, AIF could be a great way to expand your portfolio. This investment approach features financial products and customised services. 
 

8.Antique Trade

Antique trade is another excellent investment option for HNIs interested in art and culture. The artworks of acclaimed artists and artifacts with historical value could assure great returns in the future. In today's time, modern and contemporary art appeals to investors. Art funds can also be used as a significant investment tool to diversify a portfolio.
 

Bottom Line

The investment options described above are some of today's most profitable options. However, they have their pros and cons. Therefore, it is highly recommended that an investor chooses the assets and distributes the capital carefully to align with the financial goals and risk profile.