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The stock market has been volatile for years, with peaks and valleys occurring every now and again. While this volatility can cause investors to lose faith in the market, there are ways to protect yourself from this uncertainty by investing in a stable asset, like commercial real estate. One such strategy of investing in commercial real estate is via fractional ownership. It allows you to own a portion of a property without having to purchase the entire property.
A Brief History of the Stock Market
The stock market has been volatile for the last few years. No doubt, it has been very volatile in 2022 too. And there’s no reason to think that won’t continue into 2023 as well.
The point is: if you want to invest, your best bet is to buy fractional ownership of a property rather than an entire real estate property. Fractional ownership is risk-free—in fact, it’s probably less risky than buying an entire property because there’s a positive guarantee of how much money you’ll be able to make from it— it also does allow you to diversify your portfolio while still having some exposure to some commercial and residential real estate assets that may go up over time in value at some point during their existence.
Current Stock Market Volatility of the Indian Market
The current stock market volatility trend is up. Stock market volatility has been increasing since the beginning of 2019, and it appears that this trend will continue into 2023. This increase in volatility is a sign that the stock market is not a safe and stable place for investors in India. So, where should investors then invest their hard-earned money? Fractional ownership of the real estate, particularly commercial real estate. You can alternatively invest in commercial and residential real estate for better and stable returns.
So, if you want to take advantage of this stable opportunity, though—and even make some money—you’ll need to understand how fractional ownership works.
What Is Fractional Ownership?
The first thing you need to know about fractional ownership is that it’s not the same as investing in individual stocks. Real estate is also not related to stock market volatility. So, it does make sense that the stock market’s popularity is decreasing at the same time. Fractional ownership allows investors to buy a share of a real estate asset instead of buying the whole property; this means they’re entitled to a good percentage of profit. The idea behind this type of investment vehicle is that large real estate properties tend to provide consistent returns over time.
So by investing in a fraction of the real estate asset, investors can have access to the same returns without dealing with all of the risks.
Do not miss: Stock Market vs Real Estate – How Will Your 50L Grow In Volatile vs Stable Asset Class
Fractional Ownership Brings FOMO to an End
Fractional ownership is a way to own a piece of something without having to buy it all. It’s also a new and exciting way to invest in commercial and residential real estate, so if you’re interested in learning more about this growing trend, read on for some tips on how it can help you navigate volatility in your investments with the help of fractional ownership in real estate.
Takeaway
If you’re looking to buy a piece of a property without having to buy 100%, then fractional ownership is your best bet. It’s an opportunity to get in on the ground floor and diversify your portfolio without sacrificing too much liquidity.
Fractional ownership can be a great way to get in on the ground floor of an exciting business opportunity. It’s also a way to get you through the FUD arising from stock market volatility.
On a lighter note…
The stock market has always been a dangerous place to be. But with FOMO and FUD as the driving factors, investors need to know how to handle them to keep their investments intact. But, what better way to put your hard-earned money than in a stable investment vehicle like fractional ownership of commercial real estate, right?
Assetmonk is one such platform in India where you can seamlessly invest by availing of the facility of fractional ownership. The onboarding process is very simple, which makes the journey of your real estate investments quite easy. Don’t wait; invest today.
2022 Stock market Volatility Continues: Here’s How Fractional Ownership Can Get You Through The FUD FAQs
What is causing market volatility 2022?
Experts anticipate that global markets will continue volatile in the short term, owing to persistent geopolitical unrest in Europe, inflationary fears in the United States, and slowing growth in China.
One of the main reasons why fractional ownership is deemed safe is because tenants must sign a five- to a seven-year lease agreement. This makes it impervious to market volatility and economic cycles, ensuring investors’ steady rental income and capital appreciation.
