What Is Grip And How To Invest In It Using Cube?

You've invested in Indian stocks, US stocks, and mutual funds but now you want to diversify your portfolio with attractive non-market linked assets. 

Great timing because we've got good news for you!

Cube Wealth has partnered with GRIP to bring you the best asset-backed fixed-income investment experience.    

What Is GRIP?

Grip’s platform allows investors to co-invest to purchase and lease assets such as vehicles, electronic equipment and furniture to companies.

These physical assets are purchased from Original Equipment Manufacturers (OEMs) and leased to companies that pay a fixed amount of money for a fixed duration of time. 

This concept is known as "lease financing". A lease is an agreement where a lessee pays the lessor a fixed amount of money in exchange for the use of physical assets. 

GRIP Explained With An Example

Imagine The Beatles co-investing and pooling their resources to buy a giant amplifier. They lease this amplifier to a concert venue that will pay every Beatle a monthly amount in exchange for using the amplifier.

That's lease financing in a nutshell. You get to be a Beatle who co-invests in cars, bikes, machinery, furniture, and more with GRIP and Cube Wealth. You can also consult a Cube Wealth coach or download a Cube Wealth application. 

GRIP Facts At A Glance

1. Founder: Nikhil Aggarwal (CEO)

2. Co-Founder: Vivek Gulati (COO)

3. Asset Class: Lease Financing with physical assets

4. Asset Type: Non-market linked (Alternative asset)

5. Risk: Medium with zero defaults to date

6. Ideal For: 2 to 3 years

7. Returns: 12% IRR post-tax returns

8. Liquidity: 2 to 3 years

9. Passive Income: Yes (Monthly)

10. Minimum Investment Amount: ₹50,000

Why Invest With GRIP?

GRIP gives you exposure to non-market linked assets from different sectors that are leased by companies with a solid track record. GRIP selects these partners based on 3 important parameters:

• Financial analysis of annual reports from the past 12-18 months
• Corporate profile of the company that includes founders, shareholders, and more
• Business performance of the company with an eye on asset performance, key contracts, and more
  

Thus, GRIP ensures that you only lease to companies that are creditworthy and capable of paying the lease amount on time. Furthermore, lease financing is a source of passive income. 

You get a fixed monthly income with predictable returns since the lease rental is pre-agreed. Moreover, GRIP has historically outperformed traditional assets like bank fixed deposits, recurring deposits, and savings accounts comfortably.  

Explore GRIP on Cube Wealth now

Who Should Invest In GRIP?

GRIP on Cube Wealth may be suitable for both regular investors and HNIs alike because of the low minimum investment amount. It can be an ideal source of passive income with fixed returns for those looking to gain financial freedom in India. 

Moreover, GRIP's lease financing investment option can also be a useful tool for diversifying your portfolio since it is a non-market linked asset that lets you take part in the growth of India's new-age businesses.

How To Invest In GRIP Using Cube Wealth? 

Cube Wealth makes it easy for busy professionals to get access to GRIP. The investing journey is simple so that you can save time and grow wealth. Here's how you can invest in GRIP using Cube Wealth:

• Download Cube Wealth
• Complete your KYC
• Go to 'All investment options'
• Select GRIP
• Sign the investor's agreement
• Tap on invest 
  

You can invest in GRIP using Cube Wealth in two ways:

1. Systematic Investment Plan
2. Lump-sum
   

Cube users can gain a unique benefit - your investment with Cube is split across 10 unique companies (and across assets and sectors) each time you invest in GRIP. 

Download the Cube Wealth app to know more about GRIP

FAQs

Q. Can NRIs invest in GRIP on Cube Wealth?

Ans. Yes, NRIs can invest in GRIP on Cube Wealth using an NRO account. Currently, NRE accounts cannot be used to move funds to GRIP due to RBI regulations. 

Q. What does it mean to be a co-investor?

Ans. As a co-investor, you'll be a fractional owner of an asset along with other investors. Imagine you and your friends investing in a car that's leased out to Uber.  

Explore GRIP on Cube Wealth today

You can also consult a Cube Wealth coach or download a Cube Wealth application. 

Q. What are the risks associated with investing in Grip through Cube?

Ans. As with any investment, there are risks involved. The value of your investments can go up or down, and there is no guarantee of returns. Risk tolerance and objectives should be carefully considered when selecting a Grip portfolio.

Q. Is Cube regulated and secure for investing?

Ans. Cube should be subject to financial regulations in your country of residence. To ensure the platform's legitimacy and security, it's essential to verify that Cube is compliant with local financial authorities and employs robust security measures to protect users' investments and data.

Conclusion 

Grip, as an investment strategy, is a balanced and diversified approach to managing your financial portfolio. By using Cube, individuals can access professionally managed Grip-style portfolios, which aim to spread risk while offering the potential for returns. Cube simplifies the investment process and can be an attractive option for those looking to invest without needing extensive financial expertise. However, like all investments, there are associated risks, and it's crucial to assess your risk tolerance and financial objectives carefully. Cube, as a platform, should be regulated and secure, ensuring the safety and legitimacy of your investment endeavors.

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Here's exclusive footage of the Know Your Asset Session - GRIP that Cube users had access to