Alternative Investment Portfolio – March 24

March has been a volatile month for Equity and Crypto markets as both these assets are hovering around their all-time high levels and waiting for the next trigger to pick up a direction.

On the Alternative Investment front, there has been an increase in the overall yield of invoice discounting due to the current year-end demand. In the P2P segment, after the RBI intervention platforms have stopped the instant liquidity plan and replaced it with short-term products.

There has been a positive change with SEBI focussing on REITs and soon there could be guidelines governing fractional real estate platforms in the future.

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Alternative Investments Defaults and Delays

We have created a table to make it easy for everyone to track the latest status of ongoing delays and delays on various platforms and the current updates around them.

Name DealStatusUpdate
GrowpitalPlatform FreezeSEBI Freeze- SEBI require more information
- Webinar by Growpital
AltgraafArzoo Partial Repayment- - Litigation Process against Arzoo initiated
- New funding to be raised
TapinvestMelorra Asset LeasingEarly Asset Buyback- Melorra and Exampur Case filed
- Partial repayment for Exampur expected this month
GripinvestBigspoonPartial Repayment- Grip has filed case against company
- 25% asset recovery pending.
kredxDairy PowerRepayment- 93% principal repaid
KlubTagzDelay- Legal action pursued
- 3cr fundraise going on

Currently below are the key new updates on the various delays across Alternative Investment platforms.

  • Growpital SEBI Order
  • Tapinvest Melorra Buyback
  • Kredx Invoice Default

Growpital SEBI Order

Below are the latest updates on the Growpital Freeze. They had initially put a petition in the Rajasthan High Court that was rejected, thus they have moved SAT to put a stay on the SEBI order.

  • SEBI Hearing:

 SEBI has provided them with a hearing scheduled for 12th April 2024. This represents a significant step in the ongoing SEBI Ordeal.

  •  SAT Hearing

Securities Appellate Tribunal (SAT) has given them 8th April for the hearing. Below are the details of the Quorum

  • Justice (Retd.) Shri P.S. Dinesh Kumar* (Former Chief Justice, High Court of Karnataka) appointed as Presiding Officer, SAT
  • Shri Dheeraj Bhatnagar*, Retd. Principal Chief Commissioner of Income Tax, Delhi appointed as Technical Member, SAT

Tapinvest Melorra Buyback

Tapinvest Melorra had taken laptops on asset leasing through Tapinvest. It seems due to a recent restructuring the company wanted to exit the leasing. They sent back the laptop to Tapinvest without any discussion. After much discussion with Tapinvest, they have bought back some of the laptops at the correct price to honor the IRR.

Tapinvest is in talks with Melorra to process buyback for all the laptops after the fundraiser. There can be various scenario

  • Melorra buyback, but not at the correct IRR
  • Melorra refuses to buyback all laptops.

In both cases, Tapinvest will try to ensure that investors get the promised IRR. The team said they are confident that investors will not lose in the deal and expect a resolution soon.

Seems the more prudent decision is to allow buyback and then evaluate the IRR impact if any.

Kredx Dairy Power 

The dairy power invoice had been delayed for a long time. Kredx was able to recover around 70 % in the first tranche and 23% in the second tranche out of the total 100%. Kredx had a few instances of default in the past but they have also been more aggressive than a few platforms in recovering the money.

However, it is important to keep exposure on invoices low to avoid getting stuck with large capital

 

Alternative Investment Portfolio Updates

earnnest

This month I added a couple of platforms namely:

While Earnnest is a platform that focuses on high-yield Real Estate NCD, Golden Pi is a debt marketplace that has options from low to high yield.

Earnnest has a strong team and investors who want to have exposure to Real Estate NCD can explore this option. I think it is super important to have a highly experienced team in these products as it requires a granular level of intricacy in deal structuring and drafting legal documents with strong recourse apart from knowing the property and collateral.

Earnnest Code PX64XW to get 0.5%

Lending Investment

 

Some of the investments for this month include High Yield Bonds and Real Estate NCD

  • Madhura Developers -17.45% Altgraaf
  • Zuari  -13.07% Altgraaf
  • Lendingkart -12.71% Goldenpi
  • Muthoot Mini – 10.7% Altifi
  • Rusk Media -16.5% Betterinvest

I generally prefer bonds with a yield of 12% and above as post-tax returns should be close to 8.5%+ minimum else we are better off investing in an arbitrage fund at a lower tax rate.

 

Platform Returns RD NPA Total NPA
Grip Invest 10-12%(Post-Tax) 0.00% 0.30%
Klubworks 20%+ 0.15% 1.00%
WintWealth 10-11.5% 0.00% 0.00%
Jiraaf (altgraaf) 12-15% 0.00% 0.25%
Sustvest 10-11% 0.00% 0.00%
Afinue(Upcide) 13%(Post Tax) 0.00% 0.00%
Pyse 10-11%(Post-Tax) 0.00% 0.00%
Growpital SEBI Pause SEBI Pause N.A.
Leafround(Tapinvest) 15-18% 0.00% 0.00%
Altifi 12.5% 0.00% 0.00%
Betterinvest 16%-18% 0.00% 0.00%
Incred Money 11.0% 0% 0%
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Short Term Investments

Platform Returns RD NPA Investor NPA
Liquiloans (Stopped) 9% 0% 0%
Tradecred 11.50% 0% 0%
Lendbox Per Annum 11.50% 0% 0%
Lendzpartnerz 13.00% 0% 0%
Faircent 11% 0% 0%
KredX 12% 0% 0.75%
13  Karat (new) 13% 0% 0%

The RBI order on p2p lending platform to stop liquid funds model  has made all platforms stop the instant liquidity model

  • Lendbox Per Annum returns are as per expectations. I am not investing in other p2p products on Lendbox. I will explore the bonds they plan to list soon.
  • Have completely closed liquiloans as the current yield does not make any sense to invest.
  • Invested in Amazon on Wonderchef on Kredx. Have also invested in a few invoices on Tradecred, Lendpartnerz, and Tapinvest too as yields are good.

There have been a few delays on Tradecred due to year-end volume. They have updated that the backlog will be cleared by 15-20th April.

Crypto Investing

There has been a lot of interest in Bitcoin and crypto after the bitcoin spot ETF approval. In India due to the TDS rule of 1% lot of people lack interest in crypto exchanges. Another reason is the risk of hacking or exchange going down. There are 2 options for such investors

Investors can buy Bitcoin ETF on Stockal. We will be doing a detailed post on the same soon. It is one of the best way to have an allocation to Bitcoin.

P2P Investment

Current allocation:

  • India P2P – 50%
  • I2IFunding- 20%
  • Finzy-10%
  • Faircent Pool Loan -15%
  • 13 Karat – 5%
Platform Loans Selected Yield NPA
I2IFunding(Restarted) Urban Clap Loans, education loans, Group loans 13.5% 4.7%
IndiaP2P Only Women Borrower Loans, Branch-based p2p lending 16% 1.7%
FINZY(Paused) Prime Borrowers, High Salary, A category 13% 3.7%
12 Club (paused) Only Minimum amount 12% 0%
  • I Have completely stopped 12Club now as the yields are not attractive anymore.
  • There have been some delays in the last month’s repayment for Indiap2p. As per management the collection delay was due to operational issues due to floods and collections will improve next few months.
  • I2Ifunding (get 50% off) has been a low-profile platform but surprisingly has consistently delivered decent returns for me.

Equity Market

PreIPO Stocks

NSE is currently trading at 4200-4500 in the private market and investors who had bought it below 3500  have made decent gains considering that the stock provides a decent dividend yield also. Serum Institute of India Pvt., National Stock Exchange of India Ltd., and Megha Engineering and Infrastructures Ltd. are the most valuable companies in the unlisted space.

Listed Stocks

Alternative investment

Currently, the market is in overbought space but the moment looks pretty strong and I expect the rally to sustain. I am not too keen on index investing right now as the upside can be only 10-15% from current levels. At this level, I’m investing in 2 categories.

  • Individual stocks with momentum (mostly midcap and small-cap)
  • Beaten down global markets like China (Doing SIP  as i expect the bearishness to persist). Stocks in China and Hong Kong sold off a massive $4.8 trillion in market capitalization since 2021, which according to HSBC, is more than the value of the Indian stock market.

Algo Trading

I have recently started momentum and mean reversion strategies along with Market Neutral to create a more diversified basket. March has been a decent month

Investors who are just starting algo trading can explore tradetron as it requires a minimum learning curve and marketplace to copy traders.

Investors with INR 30+ Lakh deployable capital can reach out to inquire on more sophisticated algos

Other Alternative Investment Assets  and Platform Updates

ALTDRX – My current investment in ALT DRX has been deployed in prime land assets. The investment has already gained approximately 15% in the last 3 months. I tried liquidating a few units on the exchange. The actual price would be realized when I can liquidate the entire position. I will be liquidating a few units every month and also participating in the next project.  The team behind the project is quite strong. The next opportunity is in Hyderabad.

The real alpha is being generated by investing at the Private opportunity level as can be seen in my investment. The PO opportunity had gone up 20% compared to the FSO which is up around 10%

Wisex- My investment in Wisex has been performing as expected. The Sky opportunity in Pune is still live on the platform.

Flagged Alternative Investment Platforms

Have added “Talkcharge” to the list of  Flagged”  platforms. Talkcharge App has induced thousands of people to fill their wallets with various schemes of cashbacks etc All of a sudden operations halted, the office closed, & no recharge/bill payments were allowed in the app. Recently RBI has asked them to halt all operations.

Investors should be wary of too-good-to-be-true opportunities offering very high returns without providing details of the business model or the risk being taken to provide those returns.

If there are other platforms that you feel might be too risky to invest in, please do comment and we will explore and add them to the list

 

4 thoughts on “Alternative Investment Portfolio – March 24”

  1. ALTDRX is charging initially itself around 40% higher than what the builders are offering. Appreciation wise its good if you are trying to liquidate but the net worth of the property is not what the actual value is

    Reply
    • Hi I checked with Altdrx, the price available for investors is actually lower than retail if you compare overheads like stamp duty. I have asked them to share comparative reports to give us a better perspective for new investment opportunities.
      The current value for my investment is already higher than the initial level at which i had invested.

      Reply
    • We need to be more careful, especially for any platform that pools capital as it it hard to gauge the genuineness and transparency

      Reply

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