At Emerging Trends Advisors, we have always set out to source the best investment products possible for our clients. This proved easier said than done, which led us to take the step further and begin to structure our own products, of which the Aditya Group bonds are the first of a few similarly structured options to be released by us in the near future.
All a result of over a year’s worth of extensive research, networking, due diligence and incorporating a corporate structure to enable us to offer the products both legally and safely to our investors.
After researching the globe and the different market conditions we became excited about India, as it was the only country that we found that met the following criteria:
- One of the worlds major economies.
- A fast growing economy.
- An economy that we were confident would continue to be both strong and stable in the future.
- One that has a high base rate of interest.
Simply put, the cost of borrowing money in India is 10%-15% even when offering plenty of collateral. Let’s confirm that again, secured lending or ‘taking out a mortgage’ as more commonly known, will cost you between 10%-15% per annum in interest.
These percentages will seem very high to most of us, especially where in the western world we are used to the banks giving us anything between 0% and 3% on our savings!
We saw a fantastic opportunity. Our aim was to bridge the gap between the low earning west and India, where people are being forced to pay interest of 5 times the amount and more.
We all know that the banks have huge power when it comes to the financial laws and India is no different. Needless to say they there are lots of legalities preventing us from developing a product that allows westerners to step in place of the Indian banks. Therefore, in order for us to legally ‘crowdfund mortgages to Indian companies’ we had to be very careful and invest a considerable amount of time and money to ensure a legal, safe and secured solution.
We engaged with CMS, one of the world’s largest and most established legal firms, to advise us on the investment structure and contracts. We also engaged with KPMG, a world leading audit firm, and CBRE, the worlds largest real estate company, to carry out audits and valuations on before we would consider providing them with a solution to their current expensive mortgages.
We are now 100% confident that we have a perfectly legal way to basically ‘crowdfund mortgages’ to cooperations in India, and that we have done the same extensive and comprehensive due diligence on our borrowers that even the most stringent banks would of performed to ensure that their lending criteria would have been met.
We believe this product is the best option when considering risk versus reward than anything on the global market today and that whilst the interest rates in the west and India remain around these levels, it’s time to take advantage of the structure that we have put in place.
The education section of the group has a total valuation of US$81 million.
* Property Valuation of US$57 million (CBRE 2018)
* Business Valuation of US$24 million (KPMG 2018)