The biggest shock for this month was not the market turbulence but the change in the tax structure for Debt Funds. Under the new tax structure, the Indexation benefit of Debt funds has gone which means there is no tax advantage to investing in Debt Fund over bank FD or Alternative.
In fact, the investor is better off putting money in FD which is protected under Government insurance up to 5 Lakh over the Debt fund as returns are the same. Arbitrage funds are a much better option now.
For investors considering Gold investment, sovereign gold seems to be the best option considering that now Gold ETF will have marginal tax.
Many Alternative investments with zero post-tax and high-yield bonds have also become more attractive with better risk-adjusted returns
Alternative Investment Portfolio Performance
This month I focussed on investing in Long Duration Debt funds to lock higher yields before 1st April as there will be no tax benefit in future.
I recently did a podcast with fitrichsanefitrichsane who runs a telegram community on personal finance.
Below is the Spotify link of the podcast
Alternative Investments podcastAlternative Investments podcast
|Growpital||16%(Tax Free)||Blended Yield|
- All my cash flows in Klubworks, WintWealth, Pyse, Leafround, and GripInvest are as per schedule.
- Klubworks had Azure deal live with >20% IRR
- On Jiraaf invested in Navi Tech Corporate Debt Opportunity offering 11.96%.Though there are Marquee investors like Kotak, this deal has some risk due to the illiquidity of the security (OLA, Ather shares)
- Gripinvest is doing away with the LLP structure and in the future only listed securitized deals will be available which has natural diversification benefits due to multiple lease underlying.
- Have added Neo credit on Altifi as it recently raised 20 Mn Usd funds.
- Received quarterly payment from Growpital on time.
Invoice Discounting and Pooled Loans
|Liquiloans (Liquid Fund Substitute)||9-10%||0%|
|Lendbox (Per Annum +Settlement Finance)||11.50%||0%|
- Lendbox Per Annum returns are as per expectations.
- Using Liquiloans/Per Annum to Park Short term capital
- Some people are facing delays in Dairy Power on Kredx. It is advisable to stick to only trusted invoices. My invoices have been on time till now.
- Have stopped Cashkumar for the moment as no deal flow and visibility.
Bitcoin and other Crypto have recovered significantly from the bottom in the last 2 months. This month I will be doing a post on how people can use cold wallets to preserve their crypto from the market crash. It is ironic that most people were eager to buy BTC near 60K but were hesitant at the sub-20k Level. It is best to buy risky assets when the market is in fear as the assets are most mispriced at those times.
- India P2P – 50%
- 12Club – 5%
- I2IFunding- 25%
- Faircent Pool Loan -5%
|I2IFunding||Urban Clap Loans, education loans, Group loans||13.5%||4.75%|
|IndiaP2P||Only Women Borrower Loans, Branch-based p2p lending||17%||<1%|
|FINZY||Prime Borrowers, High Salary,A category||14.2%||3.5%|
|12 Club||Only Minimum amount||12%||0%|
- IndiaP2P performance has been as per my expectations till now. Have completed almost 10 months. Will consider adding some more capital in the next few months. Planning to a detailed post on IndiaP2P soon
- I2Ifunding has very few loans and reinvestment doesn’t look possible
- The systematic investment plan loan on Faircent ( Only SIP Loan) is doing well
I have been doing some research on unlisted stocks on Altius. Will be sharing my insights based on my analysis in upcoming posts.The valuation of pre-IPO stocks has come down similar to the public market performance.
I recently started Equity SIP again when the Nifty fell below 17,000. I will keep investing in Nifty at lower levels while reducing the SIP at higher levels and increasing it if it falls below 16000! Index funds are now available for Small Cap and investors who are interested in low expense ratio can explore these
Other Alternative Investment Assets and Platform Updates
Growpital Investment – The performance of the platform has been satisfactory till now. The platform has been raising decent capital too.I am awaiting the latest Audited financial report and appointment of a Trustee before scaling up my investment as there is a concentration risk as the complete investment is managed by the platform
Growpital(Promo code GROWRDIMES)
You can find the latest stats here –Growpital Performance
Sustvest Investment – My Sustvest Portfolio has been doing fine with proper repayments to date. Most deals have an IRR of around 11% which seems good considering these are post-tax returns.
Fractional Real Estate Update- My investment in MYRE Capital has been performing as expected. There is a secondary sale in Times Property which I had also invested in the past. The IRR potential for new investors can be higher due to rent appreciation
|Platform||Returns||Payment Received on time|
8 thoughts on “Alternative Investment Portfolio Performance – March 2023”
There is another alternative platform called Bhive.alts run BHIVE, which is a popular coworking brand operator in Bengaluru. The returns are great and their business is rapidly expanding all across Bengaluru. They have 3 different investment products- Asset Leasing(AL), Revenue Based Financing (RBF) and FRE (Fractional Real Estate). I have been investing with them for a year now and my experience so far has been great
I have heard about the platform but I am a little apprehensive about the business model as they provide Revenue-based finance opportunities in assets owned by their entities which can cause a conflict of interest. Also, some of the deal pricing had been on the higher side.
However If the performance seems good in long run I might explore the platform at some point of time.
Just FYI, they have completely stopped RBF now… But they have other products AL and FRE.. Also, could you elaborate on the “conflict of interest” you mentioned in the previous comment? And what exactly do you mean by “deal pricing is on the higher side”?
As far as I know, they have 2 entities 1) Bhive Coworking and 2) Bhive ALts.Apparently, BHive coworking is taking assets on lease through Bhive Alts, meaning they would want to get the best possible rates for themselves. In case there is an issue with assets they will not have any incentive to disclose it to investors as it is a sister company hence there is a conflict of interest.
Similarly for Real Estate, the ownership of the building is given to Bhive workspace which may be instrumental in selling the property at an unfair rate if they want.
These are some of the additional risks you need to be cognizant of while investing.
Please make an detailed review of Aasthy
I did an introductory post on Aasthy. Will be doing a detailed review post once they start listing more deals
Your blog on your alternative investment options is very informative. Having gone through some of the alternatives, I want to know how you cliam tax benefits for the following:
Susvest – Is it tax free returns ?
Growpital – Have you filed ITR for the same ?
Can you please guide me through the process for the same and what to do in order to get claim the returns as tax free ?
Thanks for your kind words.
Sustvest returns are post-tax while Growpital returns are tax-free which means in both cases you don’t have to pay additional taxes.
You need to add details of the LLP in ITR3 while filling returns. I will do a detailed post on the same soon.