Zebu blog

Tag: alternative investments

  • What Are Unlisted Stocks And Should You Invest In Them?

    We all know that investing in stocks can be good because, if done right, it can give you a huge return. We buy our stocks from the companies listed only on the stock market. However, there are companies that are not listed on the market whose shares you can buy. These are called unlisted stocks. Many of us don’t know that there are many benefits to investing in shares that aren’t on the stock market.

    1. Diversification of risk

    Unlisted shares have different risks than listed shares and can be a good addition to a portfolio of listed shares. They can be a good way to spread out your investments. Unlisted shares have the same or a better chance of making money than listed ones. There’s a chance that these stocks will go public at some point in the future. When they do, there’s a good chance that they’ll go up a lot. But whether you buy listed or unlisted shares, it’s important to look at the valuation metrics along with the price and buy stocks that are undervalued but have a good chance of growing earnings.

    2. Undervaluation:

    Since most unlisted shares can’t be sold quickly, they can only be bought by people who are willing to keep their money invested for a long time. Since there is less interest in these investments and fewer people want to join this community, the valuations are usually lower. There are many chances to invest in a stock that is undervalued. To find these opportunities, you need to be smart and know what to look for. For a beginner, it may be best to hire a professional who can give them the help they need.

    3. Lower volatility

    Because the shares aren’t easily sold, there are a lot fewer worries about their volatility. The standard deviation, which is a technical way of talking about how volatile something is, is much lower than listed shares. But if the wrong investment is made, the amount of money lost can be very high. Demand and supply for these stocks are not tracked every day, so the price would not change every day. When compared to listed shares, this investment will be less stressful in terms of money because the prices are fairly stable.

    How much should you spend on unlisted stocks?
    One should only buy unlisted shares if they are a good fit with the rest of their portfolio. Going overboard can make things a lot more dangerous. It is important to figure out your risk-appetite and how risky the investment is. Then, you can choose an investment that fits your risk profile. The risk of losing a lot of money in unlisted stocks is very high, so it’s important to only buy as much as fits your risk tolerance.

    We suggest that if you are a beginner investor you should keep away from unlisted stocks but if you are an experienced investor, that you still take the help of a financial advisor before investing in unlisted stocks.

  • Alternate Investment Funds – A Haven For HNIs

    Venture capital, private equity, hedge funds, and managed futures, are some of the investments that can be made in an alternative investment fund. To put it another way, an AIF is a type of investment that does not fall under the traditional categories of equities, debt securities, and so on.

    In contrast to Mutual Funds, which require a lower investment amount, Alternative Investment Funds tend to attract high-net-worth individuals and institutions.


    Before getting into understanding Investment Funds, if you are keen on investing or trading you should always have the right tools that can support your investment journey. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading.

    Alternate Investment Funds Types
    According to the SEBI, AIFs fall into one of three basic categories.

    Category 1:

    Small and medium-sized firms (SMEs) and other startups with strong development potential that are also considered to be socially and economically viable fall under the purview of Category I investment funds. They have a multiplier effect in terms of growth and job generation and are encouraged by the government to invest. Those funds have been a lifeline for firms that were already flourishing but lacking in funding.

    The following funds are included in Category I:

    Venture Capital Funds
    Funding for start-ups with great growth potential but a lack of capital to start or develop their firm is provided through Venture Capital Funds (VCF). For new enterprises and entrepreneurs, Venture Capital Funds are the preferred method of raising financial because it is difficult to raise funds through the capital markets.

    Venture capital funds (VCFs) bring together money from investors who wish to invest in start-ups. According to their business profiles and assets, they invest in a variety of startups at various stages of development. A venture capital fund focuses on early-stage investments, unlike mutual funds or hedge funds. Depending on the amount of money spent, each investor receives a piece of the company.

    VCFs are favoured by HNIs looking for high-risk, high-return investment opportunities. Foreign HNIs can now invest in VCFs and help the economy flourish as a result of the AIF inclusion of VCFs.

    The Infrastructure Fund (IF)

    The fund makes investments to improve public infrastructure, including as roads, railways, airports, and other means of communication. The infrastructure industry has a high barrier to entry and relatively low competition, making it a good investment opportunity for those who believe in the sector’s future growth.

    It is possible to earn both capital gains and dividends from an Infrastructure Fund investment. Government tax incentives could be available to Infrastructure Funds that invest in socially desirable/viable projects.

    Angel Fund

    Fund managers combine money from a number of “angel” investors and invest in young firms for their development in this form of Venture Capital fund. Investors receive dividends when the new enterprises start making money.

    As with Angel Funds, units are distributed to the investors. In the startup world, a “angel investor” is a person who wishes to invest in an angel fund and who also has company management experience to offer. These investors choose to invest in businesses that aren’t often supported by mainstream venture capital funds because of their uncertain growth.

    The Social Venture Fund

    The rise of the Social Venture Fund (SVF) as a vehicle for investing in companies with a strong social conscience and a desire to effect genuine change in society can be attributed to socially responsible investing.

    These companies aim to make money while simultaneously addressing environmental and social challenges. A return on investment is still possible because the companies involved are still expected to make a profit.

    The Social Venture Fund prefers to invest in projects in developing nations because of their potential for both growth and social transformation. A win-win situation for all stakeholders is created when the finest techniques, technology and significant expertise are brought to the table by the investors, businesses and society.

    In the following blogs, we will cover the investments that come under Category 2 of the Alternate Investment Funds.

    As we mentioned before, with the right tools your investment journey can be very smooth. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading.