Fractional ownership is the next big wave in investment-tech. It is not only opening up newer avenues for mom and pop investors, but also making instruments previously only accessible by HNIs, affordable.
Imagine you wanted to invest in an office building worth Rs 10 lakh, but did not immediately have all the funds, or did not want to part with a sum that substantial. With fractional investing, you could put in Rs 1 lakh, and own 1/10th of the property — and nine others would do the same. It not only reduces your immediate expense, but also dilutes risk.
What is fractional investing?
Commercial real estate projects run into crores of rupees, and single-handedly managing them isn’t an easy task, especially for novice investors who only seek to make a quick, assured buck. Even small sustainable projects like a solar farm, or a windmills project costs in excess of crores of rupees, which limits people from investing in them.
Enter fractional investing — an implement that offers everyone the opportunity to buy a fragment of a commercial property or a solar farm project, at prices affordable to them.