IS IT A GOOD IDEA TO DIVERSIFY YOUR PORTFOLIO WITH FRACTIONAL INVESTMENTS?

IS IT A GOOD IDEA TO DIVERSIFY YOUR PORTFOLIO WITH FRACTIONAL INVESTMENTS? Do you know that real estate has been the top investment option in India and America and that it is now being increasingly preferred over other popular investment options? Well, in India, the emotional satisfaction of owing your own property is inherently very strong. By 2040, real estate market will grow to INR 65000 crore (US$9.30billion) from INR 12000 crore (US$1.72bilion) in 2019.

Real estate sector in India is expected to reach US$ 1trillion in market size by 2030, up from US$ 200billion in 2021 and contribute 13% to the country’s GDP by 2025.

Unless you own it, none is going to trust your metal. Having said that, it’s considerably easy for a native Indian to invest in commercial real estate and ventures that are focused on sustainability. But sadly, only a few platforms offer real and tangible investment opportunities in fractional real estate. Fractional ownership commercial real estate refers to a set-up where-in groups of investors pool in funds to purchase a commercial property. They share a passive ownership of a high-value asset. This approach reduces financial burden on a single investor to own the entire property and allows the investor to earn good ROI. And yes, fractional ownership is legal in India.

GEOLOGICAL DIVERSITY Real estate investing is not as easy as one can do with stocks or gold and therefore one needs to be prepared for a grind before one can make a property choice. Property purchase is expensive and most of us may need to arrange for external finances to purchase. Before we delve into the geographical distribution, let’s understand what makes the concept of fractional investment real estate lucrative? No doubt, it opens up investment opportunities across various new asset classes across different locations and with unmatched flexibility in terms of investment capacity. It’s definitely a great idea to be flexible to explore new locations and invest in high net-worth assets with affordable share prices. Any new investor, who’s intending to invest in property must also think beyond a pick that’s right next to their neighborhood. While efficiency of the return is what weighs heavier in this kind of investment. Fractional property owners are free from worrying about the tricky issues like monitoring or maintaining the commercial properties that they’re personally invested in.

Advanced tech communication systems ensure that people can also enjoy the taste of lucrative gains without stretching that arm too long. Fractional investment is the wisest way to own an asset in modern times, for reason more than one:  

Fractional ownership gives unlimited access and opens up a wide range of property investment choices that they in any company stock irrespective of the total size of the issue price.

It requires a lesser investment amount; investors can spread their investible corpus into multiple properties and create well-diversified portfolio of different types of property assets.

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The portion of the fractional portfolio that is invested in rent generating assets creates a stable, longterm income stream.

It offers a complete suite of managed property solutions, so investors do not need to worry themselves about property management challenges.

All fractional ownership platforms offer to provide secondary fractional sale opportunities through an all-time open solution or with opportunity windows to enable exit as well.

HOW MUCH OVERSEAS INVESTMENT IS LEGAL? Investing opportunities are everywhere and many promises great returns. An Indian citizen can utilize the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India to invest in property abroad.

The LRS permits free remittance of up to $250,000 per individual per financial year. It’s imperative to be aware of the local taxation laws of any geography you’re committing to. There are massive returns and sustainably huge yields from foreign equity markets though.

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Investing in US stocks- Many Silicon Valley firms are on a path towards unicorn growth and with an explosion in the availability of digitized investment platforms, owning stocks in big social media platforms like Facebook, Instagram, and biggies like Apple and Microsoft is a cakewalk.

Investing in Fractional shares- A fractional share represents a less-than-whole share of the entire equity up for grabs. These are an easy answer to any investor when they’re faced with mammoth challenge of investing in a market that’s beyond their means. It costs way less than the single share of stock and is a lucrative option too, looking at the returns pattern as well.

Trusting a leading real estate leader, Yield Asset, would definitely be a right turn in pivoting your hard-earned funds into profitable business ventures and estates. Looking at such huge opportunity Fractional investment is, one can never go wrong with investing, small or big, with less hassle and more return on such secured investment patterns, while helping in diversifying their investment portfolio manifold.