Category - Personal Finance and Investments

this section offers a concise yet comprehensive exploration of personal finance and investment strategies. Catering to both beginners and seasoned investors, we provide insightful guides, expert analysis, and the latest trends to help you navigate financial management and wealth growth with confidence.

Advantages of Investing With WiseX

June 7, 2024

Sahiba Neeru

Personal Finance and Investments

2 minutes read

Deciding where to put your money is a big deal. It is not just about saving, but about finding the right investment platform that helps you achieve your financial goals. That is where WiseX can help.

When you invest with WiseX, you are not just putting your money somewhere and hoping for the best. You are entering a world of investment opportunities, tailored to your needs and preferences, that can grow your wealth while the investment amount being safe. Go through this blog to learn the advantages of investing with WiseX.

What Are the Benefits of Investing With WiseX?

Here is a list of the advantages of investing with WiseX which you can avail:

Discover Institutional Grade Investment Opportunities

We meticulously analyse more than 150 data points, ensuring that less than 1% of opportunities meeting our stringent criteria. By doing so, we minimise the risks associated with each investment and make sure that you are investing in top-notch properties.

Easily Navigate KYC and Start Investing

Our streamlined process allows you to complete KYC requirements and begin investing without any hassle.

Transparency

At WiseX, transparency is paramount. We provide detailed reports and complete disclosures throughout the investment process, so you know exactly where your money is going and how it is performing.

Flexible Returns

With over 25 years of experience in the real estate sector, WiseX delivers consistent monthly or quarterly returns on your investments, giving you peace of mind and financial stability.

Liquidity

Our tech-based platform enhances liquidity, offering multiple exit options for your fractional ownership investments. With WiseX, you have the flexibility to access your funds when you need them, providing peace of mind and financial freedom.

Proper Guidance

Investing can be daunting, especially for beginners. Therefore, WiseX provides access to expert advisors who will provide personalised guidance and end-to-end support to you throughout your investment journey.

Step-by-Step Procedure for Fractional Ownership Investment with WiseX

The following are the steps you must follow to invest in A-grade commercial real estate with WiseX:

Step 1: Browse through a variety of properties, across different locations and select one that suits your investment planning.

Step 2: Upon selection, you will see details like its value, available shares and price per share. Decide your investment amount based on your budget and risk preference.

Step 3: Complete KYC documents online and confirm your investment amount with your dedicated investment manager.

Step 4: After confirming, sign an EOI (Expression of Interest), and deposit 5% of your investment into an Escrow account, securing your investment opportunity.

Step 5: When the investment opportunity reaches full commitment, submit the remaining 95% of your investment.

Once you complete the above steps, WiseX will start the documentation process to finalise your investment. Upon successful investment, you will start receiving your returns on a monthly basis.

The Bottom Line

After understanding the advantages of investing with WiseX, it is clear that our platform offers a tailored approach to investment, minimising risks and maximising returns. Whether you are a seasoned investor or a novice, WiseX offers a seamless experience to all, enabling them to navigate the complex real estate landscape.

Unlocking Real Estate Opportunities: A Guide to Fractional Ownership Investment

May 20, 2024

Sahiba Neeru

Alternative Investments, Personal Finance and Investments

4 minutes read

Fractional ownership is when a group of people buy a share of an asset without having to pay its full price. By sharing the ownership, each investor gets the chance to partake in the benefits associated with the investment. Since COVID-19, there has been a surge in demand for fractional ownership among retail investors due to the market’s expanding potential.

So, whether you are a high-net-worth individual (HNI) or a retail investor, if you are interested in fractional ownership investment and seek to know the procedure, keep scrolling to discover the steps involved.

What Is Fractional Ownership?

Fractional ownership is an investment approach where multiple investors pool their funds to invest in valuable assets such as residential or commercial properties. Investors hold shares through a Special Purpose Vehicle (SPV), entitling them to passive ownership rights and benefits aligned with their contributions.

By owning shares in the SPV, which in turn owns the property, investors spread the financial responsibility, allowing them to access high-value assets while mitigating individual financial burdens.

What Is the Procedure to Invest in Fractional Property?

Here are the steps you need to follow to invest in a fractional property.

Step 1: Determine the Property Type

First, decide on the type of property you want to invest in, whether residential like luxury apartments or commercial spaces such as offices, warehouses, or retail outlets. For those seeking recommendations, commercial properties like office spaces, fueled by the growth of the Indian IT sector, are an ideal option, with net absorption expected to grow around 20-22% in 2024.

Step 2: Choose a Platform

Research online platforms offering fractional ownership opportunities and choose based on factors like track record, regulatory compliance, and property portfolios.

Among the leading platforms in India, Aurum WiseX stands out as a potential investment partner with over 25 years of experience in real estate.

Step 3: Explore the Opportunities

Upon selection, explore the opportunities offered by your platform and evaluate details like property value, available shares, price per share, rental yield, tenant profile, tenancy terms, and more. Determine your investment amount based on your budget and risk tolerance.

At Aurum WiseX, less than 1% of the opportunities pass the stringent selection criteria based on 150+ data points and get listed. One such exemplary offering is the Sky One Corporate Park, a Grade-A commercial real estate located in Viman Nagar, Pune.

Step 4: Complete Investment

After evaluating the property and investment details, one can invest by completing the following steps:

Complete the KYC verification and confirm the investment amount with which you want to proceed on the platform.
Upon completion of KYC verification, the platform sends an EOI (Expression of Interest), which you need to sign and deposit a portion of your investment, generally 5-10%, into the Escrow account. This will secure your investment opportunity.
Once the investment opportunity gets 100% commitment, the platform will ask you to submit the remaining investment amount during the drawdown phase. Following this, you need to sign the private placement and offer documents.

Now all you need to do is track your investments on the platform’s dashboard and wait for the benefits to roll out.

What Are the Points to Evaluate Before Fractional Ownership Investment?

Here are some key points you must consider before making a fractional ownership investment.

Micro-Market Trend of the Location

Consider investing in properties situated in prime locations where profitability can be maximised, attracting investors seeking premium returns.

As per a report of JLL India, the real estate sector in Pune has seen a year-on-year growth of rental rate by 5%. This is mainly because of the booming IT sector and the improvements in infrastructure and redevelopment projects in key areas. These factors can boost the value of properties. Thus, it is important to keep up with these trends when looking at properties online.

Tenant Profile

In residential buildings, tenants often leave quickly, causing unstable rental income. However, commercial properties leased by big multinational corporations (MNCs) offer stability due to long-term leases backed by security deposits and company guarantees. Selecting successful and reliable tenants is crucial for a steady income.

Legal Compliance

Verify the permissions and legality of the facilitator to operate in the fractional investment domain. With large sums of money involved, it is crucial to mitigate the risk of fraud or any possible legal hiccup.

ROI Analysis

Perform a comprehensive Return on Investment (ROI) analysis before prioritising any fractional ownership investment option. To estimate your potential ROI for fractional real estate investments, consider factors such as the IRR of the property, capital appreciation prospects, management fee, security deposit, and monthly return yield.

For instance, you can analyse the ROI of the Sky One Corporate Park of WiseX by going through their current investment opportunity model.

Management and Transparency Factors

Prioritise fractional investment opportunities with tech-enabled management and online tracking capabilities. Additionally, look for transparent exit options without hidden clauses.

The Bottom Line

Through fractional ownership investment, you get the opportunity to own a high-value asset that will enable you to pool money and diversify your investment portfolio are you ready to put this investment into practice? Consider Aurum WiseX to start your fractional ownership journey and own a piece of commercial real estate. By joining us, you can secure a share of lucrative properties and earn monthly rentals of up to 10%. Furthermore, you can leverage capital appreciation with net returns in a range of 12-18% IRR.

How Is Fractional Ownership Better Than Stocks?

May 15, 2024

Sahiba Neeru

Fractional Ownership, Personal Finance and Investments

3 minutes read

When it comes to investment, people are drawn to a diverse array of investment options, ranging from traditional stocks to innovative avenues like fractional property ownership.

While stocks have long been a popular choice, fractional ownership investment presents a unique opportunity to benefit from real estate assets in smaller portions. This appeals to a wide range of investors, from experienced individuals seeking to diversify their portfolios to affluent newcomers looking for alternative avenues.

In this blog, we will walk you through why fractional ownership is better than stocks in today’s financial landscape.

What Is Fractional Ownership?

In fractional ownership, various investors come together and pool their money to buy top-quality commercial or residential real estate. Each investor gets a certain portion of the equities of the Special Purpose Vehicle (SPV) that owns the property, granting them a proportional stake in ownership. This collaborative method makes investing in sizable properties achievable for a broader range of participants.

Advantages of Fractional Ownership

Following are some of the benefits of fractional ownership that make it a smart investment choice for you:

Access to High-Value Properties

It enables you to invest in high-quality real estate properties that might have been financially out of reach through traditional ownership. This means you can own a portion of equities of the SPV, holding property such as office buildings, retail spaces or industrial warehouses in desirable locations, giving you exposure to valuable real estate assets.

Lower Investment Costs

Fractional ownership reduces the capital required to invest in real estate. Instead of buying an entire property, you can invest in a fraction or a share of it, making it more accessible for investors with smaller budgets.

Professional Management

Many fractional ownership platforms partner with professional property management services, specifically tailored for commercial real estate. These services handle tasks such as tenant leasing, property maintenance and asset optimisation, ensuring that the property is well-managed and maximising its potential for rental income or resale value.

Flexibility and Easy Selling

With fractional ownership, you have the flexibility to sell your share in the property if you want to cash out. This gives you the freedom to adjust your investment strategy, refine your portfolio or take advantage of changes in the market.

How Is Fractional Ownership Better Than Stocks?

Fractional ownership offers several advantages over traditional stock ownership, making it a compelling option for investors. Here is why you should invest in fractional ownership over stocks:

Steady Returns

Stock market earnings rely on market ups and downs, which is highly unpredictable. However, with fractional ownership, returns stay stable over time. Furthermore, fractional ownership lets investors put money into top-notch properties leased to big companies. Long lease deals mean investors get a steady stream of rental income.

Multiple Benefits

Fractional ownership comes with multiple perks, including income from monthly rent and asset value growth when selling. This unique blend of income stream and capital appreciation distinguishes it as a superior investment choice compared to stocks.

Smart Research

When investing in the stock market, you usually spend a lot of time researching companies. However, with fractional ownership, real estate experts handle the research, ensuring good property deals. Properties listed for fractional ownership go through a strict evaluation to guarantee high returns.

Diverse Opportunities

Diversification is another perk of fractional ownership. Unlike stocks, where all investments are tied to market trends, fractional ownership lets you spread your money across different properties in various places and sectors, reducing overall risk.

The Bottom Line

Overall, fractional ownership is considered better than stocks by several expert investors due to its ability to provide stable returns, in terms of consistent rental income and potential asset value growth. Fractional investment in real estate allows diversification across various properties and sectors, reducing overall investment risk. Moreover, the research process associated with fractional ownership is streamlined, thanks to expert inputs.

Speaking of experts, Aurum WiseX is one of the trusted investment platforms offering fractional ownership opportunities. Therefore, if you are looking for a smarter investment option, fractional ownership through Aurum WiseX could be the way to go.

Frequently Asked Questions

Which investment option has more risk fractional ownership or stock?

Fractional ownership in real estate and stocks both carry risks. However, the level of risk for fractional ownership investments depends on factors such as market fluctuations, property management challenges, and legal complexities, while stocks face volatility, economic factors, and global events.

How does fractional ownership work?

In fractional ownership, investors contribute funds to purchase a share of the SPV owning the real estate asset. Each investor holds a proportional stake in the asset and receives benefits such as rental income according to their ownership percentage.

What are some of the benefits investors can expect from fractional ownership?

With fractional ownership, you will be able to invest in top A-grade properties with an affordable investment amount. Furthermore, you will be able to earn monthly rental income and leverage potential capital appreciation upon the sale of the asset.

What Are The Contemporary Asset Classes to Invest in 2024?

January 25, 2024

Mohit Bali

Personal Finance and Investments

3 minutes read

In 2024, the investment scene is transforming, with India’s economic prospects shining brighter than the global average. Anticipated to grow at a rate of 6.5-7%, thanks to government policies aimed at transparency and stability, India is becoming an attractive investment hub. This promising economic backdrop calls for investors to look beyond traditional safe havens like fixed deposits and to consider a broader array of innovative and modern assets. Such a proactive approach aligns with the nation’s robust economic trajectory and opens doors to potential growth and stability in the realm of investment.

Real Estate Revolution

India’s real estate sector, evolving into a significant force in the global market, is increasingly focusing on more accessible investment forms. This shift is highlighted by the introduction of SM REITs (formerly known as fractional ownership of Commercial real estate) by SEBI, which broadens the scope of commercial real estate investment. India’s contribution to the $1.2 trillion global real estate investment is notable, particularly with the Asia Pacific region, including India, accounting for 35% of this, as highlighted in Colliers’ 2024 Global Investment Outlook.

The growth trends in specific real estate sectors further underscore this development. The office sector in India saw a 1.6X year-on-year increase in investment inflows during Jan-September 2023, reaching USD 2.9 billion. This growth, along with the expansion in the industrial and warehousing sectors, reflects a robust and broad-based market expansion.

Additionally, the surge in new real estate launches in India’s top seven cities, which accounted for 41% of the market in the first quarter of 2023, demonstrates the sector’s dynamic growth. This data, sourced from Knight Frank India’s “India Real Estate Report Q1 2023,” highlights the rising trend in development activities.

These indicators point towards a strong and sustained growth trajectory for India’s real estate sector, anticipated to continue into 2024 and beyond, driven by innovative investment structures and diverse development projects.

The Surge in Indian Equities

India’s stock market is now welcoming a wider spectrum of investors. The increase in demat accounts to 12.7 crore, as per SEBI’s data until August 2023, signals a more inclusive investment environment. In 2023, India stood out as the global leader in IPOs, particularly in Q3, with a remarkable 376% growth in funds raised, totaling $1,770 million. This bustling activity, along with investors’ keen interest in subscribing to IPOs for initial gains, indicates a significant shift towards diverse investment portfolios, despite inherent equity market risks like economic downturns and geopolitical events.

Expansion with Alternative Investments

Investors are broadening their portfolios with alternative investments, reflecting the growth and maturity of India’s financial markets. Ventures like startups, natural resources, and cryptocurrencies, particularly Bitcoin’s rise again since November 2022, showcase the increasing preference for varied investment opportunities beyond traditional stocks and FDs. Initiatives like “Make in India” are attracting global funds, while changes in regulations make investing more open to the public. There’s a trend towards innovative financing methods, such as loans that can convert into shares, and the alternative investment funds sector is growing, providing more choices for investment. Advances in financial technology and strong investment regulations are also encouraging more people to explore these non-traditional investment options.

Strategize Investments by Keeping a Balanced Approach

In this changing investment landscape, a balanced approach is essential. Leveraging the growth potential of real estate, especially through innovative options like SM REITs, alongside the dynamic equities market, forms the core of this strategy. Incorporating alternative investments enhances this blend, ensuring a well-rounded portfolio that maximizes returns while managing risks effectively.

As we delve into 2024, the Indian investment scene is ripe with opportunities, ranging from the burgeoning real estate sector to the accessible equities market and the diverse world of alternative investments. Understanding and strategically leveraging these options will be key for investors looking to capitalize on India’s economic growth and the global investment shift.

Navigating Personal Finance: Thumb Rules for a Secure Future

January 25, 2024

Mohit Bali

Personal Finance and Investments

2 minutes read

The journey to financial stability is akin to navigating a complex labyrinth. At WiseX, we understand the significance of having a reliable compass to guide you through the maze of personal finance. Thumb rules in finance are not absolute laws; instead, they are beacons that provide direction. These strategic guideposts have been tried and tested, serving as cornerstones for building a robust financial future. Today, we share with you pivotal thumb rules that can illuminate your path toward financial planning.

Rule of 72: Doubling Down on Investments

The Rule of 72 is a swift and simple way to gauge the growth of your investments. Divide 72 by the annual rate of return to estimate how many years it will take for your money to double. For example, at a 9% interest rate, your investment will likely double in eight years (72 ÷ 9 = 8). It’s a preliminary compass point for WiseX investors to align their compass with their financial horizon.

100-Age Rule: Balancing the Investment Scales

Determining your investment in stocks is made easier with the 100-Age Rule. Deduct your age from 100, and that’s the percentage of your portfolio that could be allocated to stocks. If you’re 40, for example, 60% of your investments might be in equities. This rule naturally adjusts as you age, shifting towards a more conservative stance as you approach retirement.

50/30/20 Rule: Structuring Your Spending

A sustainable budget is the bedrock of financial stability. The 50/30/20 Rule suggests an allocation of your after-tax income: 50% for necessities, 30% for desires, and 20% for savings and debt repayment. This balanced approach ensures essential expenses are managed while fostering future financial growth.

6X Emergency Rule: Building a Safety Net

Life is unpredictable, but your financial response shouldn’t be. The 6X Emergency Rule recommends having an emergency fund worth six months of living expenses. This financial buffer can help you manage unforeseen circumstances without derailing your financial plans.

20X Insurance Rule: Securing Your Legacy

Life insurance is a fundamental pillar of financial planning. The 20X Insurance Rule suggests a coverage of 20 times your annual income, giving you confidence that your loved ones will be secure in any eventuality.

40% EMI Rule: Keeping Debt in Check

Debt management is critical in personal finance. The 40% EMI Rule advises that no more than 40% of your income should go towards EMIs, ensuring that debt doesn’t overwhelm your financial resources and future savings.

Retirement Rule – 25X Your Annual Expenses

Retirement planning is vital, and the 25X Rule offers a clear target: save 25 times your annual expenses before retiring. This strategy is predicated on a 4% safe withdrawal rate, ensuring that your nest egg sustains through your retirement years. Changes in interest rates may require adjustments to this rule, but it remains a solid benchmark.

1st Week of Investment: Prioritising Your Future

The 1st Week of Investment Rule emphasises immediate action. Invest at the start of each month to make your financial growth a priority from the get-go.

These thumb rules are the navigational stars in the vast sky of personal finance. They are starting points for WiseX investors seeking to transform their economic landscape. While these principles lay the groundwork, remember that personal finance is deeply personal. Use these rules to inform your decisions, but tailor them to fit your unique financial journey.

Are you ready to put these financial thumb rules into practice? Reach out to WiseX, and let’s tailor a personal finance plan that aligns with your aspirations. Your future is not just a dream; it’s a destination we can reach together.

Listed and Unlisted Securities

January 25, 2024

Mohit Bali

Alternative Investments, Personal Finance and Investments, WiseX Updates

1 Comment

3 minutes read

In the diverse world of investments, understanding the landscape is crucial for navigating it successfully. At WiseX, India’s preeminent neo-realty investment platform, we believe in equipping our investors with key insights to make informed decisions. A fundamental aspect of this knowledge is distinguishing between listed and unlisted securities.
This blog sheds light on these two categories, helping you understand their differences, advantages, and implications for your investment strategy.

Understanding Listed Securities
Listed securities are financial instruments traded on formal stock exchanges like the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE). They encompass a range of products, including stocks, bonds, and derivatives.

Advantages of Listed Securities
Regulatory Oversight: Listed securities are regulated, offering investors a degree of protection.
Liquidity: Due to their availability on public exchanges, they are easier to buy and sell.
Transparency: Prices of listed securities are available in real-time, ensuring transparency.

Challenges with Listed Securities
Market Volatility: These securities are often subject to market fluctuations.
Global Influence: External factors like geopolitical events can impact prices.

Exploring Unlisted Securities
Unlisted securities, in contrast, are not traded on public stock exchanges. These include private company stocks, government securities not traded on the market, and other financial instruments.

Advantages of Unlisted Securities
Potential for High Returns: They often offer the potential for higher returns compared to their listed counterparts.
Less Market Impact: Less susceptible to market volatility and sentiment.

Challenges with Unlisted Securities

Lack of Liquidity: Selling these securities can be challenging due to the absence of a ready market.
Limited Information: There’s often less publicly available information, making valuation difficult.

Why the Distinction Matters?
Understanding the distinction between listed and unlisted securities is pivotal for investors. It affects portfolio diversification, risk assessment, and aligning investments with personal financial goals. For instance, listed securities can provide stability and ease of access, while unlisted securities can offer unique growth opportunities, albeit with higher risk.

Listed vs. Unlisted: A Comparative Insight
A comparative analysis of these two types of securities reveals varying risk profiles, return potentials, and suitability for different investor types. While listed securities offer a safer bet for conservative investors, unlisted securities can be attractive for those willing to take on more risk for potentially higher returns.

Listed Securities	Factors	Unlisted Securities
Publicly traded companies, ETFs, REITs	Issuer Types	Private companies, Start-ups
Subject to market conditions but generally stable due to higher regulatory standards	Credit Risk	Higher due to less regulatory scrutiny and transparency
High due to trading on public stock exchanges	Liquidity	Limited as they are not traded on public exchanges
Active, with price transparency due to real-time market data	Secondary Market	Less active with pricing that can be opaque or determined through negotiation
Regulatory frameworks like SEBI in India ensure compliance with stringent rules	Regulatory Oversight	Less stringent, subject to private agreements and less formal regulation
Tax treatment as per standard capital gains tax for securities	Tax Considerations	May have different tax implications based on investment duration and vehicle
Stocks, derivatives, bonds, etc., across various sectors	Investment Opportunities	Equity stakes in private ventures, debt instruments with negotiated terms
Brokerage fees, transaction costs, and taxes may apply	Trading Costs	May involve valuation costs, but typically lower transaction fees since they are not traded on exchanges

Aligning Your Investment Strategy
Choosing the right mix of listed and unlisted securities depends on your investment goals, risk tolerance, and time horizon. WiseX can assist in crafting a personalized investment strategy that balances these elements, ensuring your portfolio aligns with your long-term financial aspirations

At WiseX, we understand that the investment world can be labyrinthine. Our aim is to provide clarity and guidance, helping you navigate the maze with confidence. Whether it’s listed or unlisted securities, our expertise and innovative platform are here to support your investment journey every step of the way.

Embark on your investment journey with WiseX. Explore a world where informed decision-making leads to fruitful investments. Connect with us today and take the first step towards realizing your financial dreams.