Looking for higher returns? Check out these three amazing options

Everyone wants to boost their portfolio returns while simultaneously being ready to accept higher risk. In this post, we will discuss three high-risk – high-return investing ideas.

Almost everyone seeks higher returns. This is why we see investments shifting between direct equities and mutual funds at times. Although, once again, this is a terrible tactic that may end in an unfavourable consequence.

Nonetheless, whether you invest in stocks, mutual funds, or any other financial product, recognising risk is critical. Historically, there has been a direct correlation between risk and return.

As a result, larger returns are sure to attract higher risk. However, we feel that having an ideal asset allocation is essential since it will assist you in creating a risk-return profile that matches your risk tolerance.

Having said that, we have three investing alternatives for you if you're an adventurous person with a higher risk tolerance level. These are high-risk – high-return profile investing ideas.

Revenue-based financing

Revenue-based financing (RBF) involves investors lending money to a business in exchange for a proportion of the company's revenue. Such finance is typically used by corporations or fledgling start-ups. There are several platforms available on the market that enable RBF. Investors can commit as little as Rs 50,000 for each transaction here.

Peer-to-peer lending

Peer to Peer (P2P) lending is simply a method for any individual to obtain credit directly from other individuals or investors without the need for an intermediary. Only platforms authorised by the Reserve Bank of India (RBI) are permitted to operate in this arena. The minimum investment amount is Rs 5,000, while the maximum limit specified by the RBI is Rs 50 lakh.

Fractional real estate

A concept in which like-minded people jointly own commercial property is referred to as fractional real estate. The cost of acquiring a property is divided into multiple fractions in fractional real estate. This allows investors to construct a strong real estate portfolio without buying and owning the whole property. You become a fractional owner as an investor. You may invest as little as Rs 20,000 here.