Exploring Investment Options Beyond SME IPOs

Investment Options Beyond SME IPOs

When considering investment options beyond SME IPOs, mutual funds lead the charge as safer and more accessible avenues. According to Jitendra Sikligar from MySIPonline, the Indian mutual fund industry reached ₹46.37 trillion in assets under management by March 2023, reflecting a remarkable 21% growth year-on-year. Equity mutual funds, especially large-cap and multi-cap funds, delivered impressive annual returns of 12-15% over the past decade. For instance, a monthly SIP of ₹10,000 in a fund yielding 12% could appreciate to over ₹1 crore in 20 years. Notably, mutual funds cater to various risk profiles, incorporating debt and thematic options, thus presenting a flexible investment choice.

ETFs

Passive funds and ETFs offer a low-cost way to invest by tracking major indices like the Nifty 50 or Sensex. This not only minimizes expenses but also allows investors to mirror market performance without actively managing their portfolios. As such, ETFs have become a popular alternative for many looking to diversify their investments.

REITs and Real Estate

Real Estate Investment Trusts (REITs) provide direct exposure to real estate markets, allowing investors to benefit from property income and appreciation without the need for substantial capital investment. Renting out properties can yield steady income, making REITs a viable long-term strategy for investment.