Investments have been a peculiar topic for me. Thinking back to my days when I started working back in 2013, I knew and understood very little of what it meant to invest and how to start accumulating wealth. Yep you guessed, halfway through that first year, I had spent most of my money and the little I did have at the end of each month went to savings, but still, no investments were on the horizon…
…Fast forward to a couple of years later, and you start picking up a sense of what investments really are and start dabbling in the virtual investment world. However, you quickly realise that the investment world remains closed off and isolated to an elite group of people that have the know-how and understanding of the ever so complex jargon used and are able to decipher the matrix. This naturally leaves out a large portion of the market, resulting in having a large part of the market that has the money and interest to invest but can’t decipher the matrix to get comfort in what they investing in.
And with that in mind we see the rise of real asset-backed investments. Now we not talking about your structured investment products here, we’re talking about turning physical assets into investment products. We are seeing more and more of such alternative investment products turning up and this is driven by 3 main factors:
1. To provide real asset-backed investments, investors take comfort in moving away from virtual investments that they really don’t understand. With real asset-backed investments, there is an understanding of the underlying asset and a much easier understanding of how returns are generated.
2. Creating products that speak to a market that has remained in the shadows and is now more than ever interested in participating in the investment world.
3. With real assets, there tends to be a massive social impact that comes through, thinking to SV Capital, we focus on empowering small-scale farmers through our investment to expand operations and give these small-scale farmers a better foothold in the market thus creating sustainable jobs in and around the community.
In my opinion, the era of “real asset-backed investments” is upon us driven by the fact that you have a market that has remained in the shadows and is now interested to part-take and be involved in the investment world, but won’t succumb to traditional investment products. They looking for innovative, tangible investments that are easy to understand and that is exactly what this new wave of “real asset-backed investment products” looks to provide. Creating solutions for African problems!