Leaf Round is a platform where you can invest in alternative assets and earn monthly returns.
Want to know how?
This is the complete review of this dynamic investing app after closely using the platform and understanding the complete business model.
What Is Leaf Round?
Leaf Round is an Indian investing platform where people can easily invest in alternative assets. Alternative assets basically include anything apart from equity, cash, and income.
Now, Leaf Round makes investing in these alternative assets super easy. If you are not sure of the hefty investing sum or the risks involved in these investments, Leaf Round can do it all for you.
It offers investment options in tangible assets like EVs, Home appliances, furniture, and electronics that can be bought and put on the lease. As you invest in these assets, you become the owner of them, and then you can easily lease out the assets and earn monthly rent from them.
Through the platform, you can read all the information about the asset and then decide whether it is worth your money or not. As you get a grip on the platform, you can make your first investment in minutes with Leaf Round’s excellent support and operations.
Features Of Leaf Round
There are many features that come along with Leaf Round. Whether it is about your investment or receiving the return a.k.a. the rent of your assets, Leaf Round can do all the tasks for you.
1. Investing In Legit Assets
With Leaf Round, you can completely rely on the assets listed on the platform. The company along with its team of experts analyzes the business model and its offerings multiple times before listing it on its platform.
All the products available are fully tested and have very low risk. You can easily buy these assets and earn your monthly rent from it.
2. Buy And Start Earning In The Following Month
This is something that no other investment can offer you. Generally, people have to wait years to earn interest or even get their principal amount. However, with Leaf Round, you can start getting your returns in a month.
After investing in an asset, the rent is paid to you on the 20th of every month. You don’t even have to withdraw these funds manually or sign any documents. The amount is directly credited to your bank account.
3. User-Friendly Platform
Many times, people are uncertain that they won’t be able to invest themselves or manage their portfolio while investing. Leaf Round completely removes this barrier by delivering a very easy-to-use platform. Simply log in with your account, pick your favorite deal and make the payment through bank transfer or UPI.
That’s it. You will start receiving your returns within a month, and that too without any complications or technicalities.
4. In-Depth Reports
As soon as you make your investment, you will be able to monitor all the reports in this section. You can see the total returns, invested amount, and all the other details regarding your invested asset. It also shows you the time left for the investment’s maturity and the future rent that you will be receiving.
Leaf Round believes in complete transparency and offers you all the insights of the platform. You can easily access all the details about the assets when you can do the buyback, how much the depreciation cost, and much more.
With Leaf Round, you are always in full control of your investments and returns in the times to come.
6. Buyback Of The Assets
This is something that changes a lot of things. With Leaf Round, you get to sell off your assets once it is not in the best of state or after it has become quite old. With every asset, Leaf Round has attached a buyback date when the asset will be bought by the company.
This gives a little bit of extra safety and additional money to the investor, as he gets the depreciated value of the asset on top of the rent. But you should understand there’s always some sort of contingencies with these kinds of offers. Buybacks are the deals set in the future, meaning, you don’t know what/if it will happen. The deal might change dramatically depending on the market condition and Leaf Round itself.
How Does It Work?
With alt investment as the highlight on the platform, Leaf Round offers various tangible assets to its users. Let’s break this structure down into steps and understand the working of the platform.
1. Presenting Reliable Companies
Leaf Round is very much focused and concerned with providing the right investment instruments to the users. This is why it filters out the best companies that have been well-established and are doing well in their sectors.
Before presenting the assets to the users, Leaf Round does multiple quality checks on the assets and only then gives the green flag to the product.
2. Available For The Users
As the asset gets live on the platform, the investor is eligible to take part in the investing. The only criteria for them are that they must be above 18 years old with a valid PAN card and an AADHAAR card.
The investor can check all the details about the product in the description. Whether it is the average monthly rent, the company’s history, performance, or the current demand, you can inquire about anything and everything about the asset.
The minimum amount to invest in any instrument on Leaf Round is just Rs.5000. Simply make the payment and enjoy the returns every month.
3. Paying Monthly Returns
After investing in an asset, you become the legal owner of that particular product. However, you don’t need to rent out your asset and manually collect the rent monthly. All of this is done by Leaf Round.
The payout of the asset is credited to the bank account that you mentioned in your profile of Leaf Round along with KYC verification. As the payment is processed, you will be notified through an email or an SMS. You don’t even have to open a Demat account for investing in such assets.
This means that all the rental collection is done by Leaf Round and it is deposited in your bank account by the platform itself.
4. Buyback Of Assets
You must be knowing that assets are depreciating in value and they never remain the same. Similarly, if you are buying an asset, it is completely natural and obvious that its value will fall in the future.
Leaf Round protects you from this situation by offering a complete Buyback of the asset. The value of this buyback is mostly equal or reduced due to the depreciation factor of the asset.
How Does Leaf Round Stand Out Among Its Competitors?
It is a very important question that must be answered if you are thinking of investing in Leaf Round. If we monitor it closely, then the only competitor for the platform is Grip Invest. Although it offers the same services to its investors, it does not offer a minimum investment below Rs.10,000.
This limits the possibilities to make an alt investment in the platform. However, Leaf Round lets you invest as low as Rs.5000.
Apart from this, Leaf Round also gives a very detailed analysis of your investments, upcoming payments, and future events. Grip does offer such features but not all of them. This gives another plus point to Leaf Round.
How To Buy An Asset On Leaf Round?
You can easily make your investment on Leaf Round within minutes. Let’s have a look at the step-by-step guide for investing on the platform and earning returns every month.
- Log in to Leaf Round. If you don’t have an account, sign up for the platform with your Email ID and password.
- As you sign up for the platform, you will come to the dashboard of the platform. Here you can easily screen all your investments. Get yourself familiar with all the sections and monitor your investments here.
- If you have any pending payments, you can make them directly from this section of the platform.
- Next, when you are ready to make your investment, click on the “Deals” tab.
- Here you will find all the deals present on Leaf Round. The Live button shows these deals which are available for investment at the present time.
- You can simply click on any of the deals to know more about them. You can read almost anything and everything related to your investment in this section. From the working of the asset to its offerings, read everything that you need to know before buying it.
- Now, click on “Investment Details” to move further in the deal.
- You can now see the details of the deal on this page. From the IRR to the total returns and the tenure of the deal, you can read all the norms of the contract here.
- You can alter the quantity of the assets from the “+” button. However, you cannot decrease it below a set limit by Leaf.
- After you are done analyzing everything, accept the statement and click on “Proceed to pay”
- Now, you can easily make the payment through the various payment options available on the platform. Select the one you want and make the payment. You will be able to see the deal and the investment in the Dashboard section now.
- Monitor your investments and earn monthly returns directly from Leaf Round.
What Are The Risks Involved In Leaf Round?
With investments, there is always some risk involved and with Leaf Round, the case is similar. If you are thinking that it is guaranteed that you will make a handsome profit from these deals, hold on for a second. Check out the following risks that are involved in investing with Leaf Round:
- Being a tangible asset, there is always a risk of theft, redundancy, or damage to the product.
- There can even be a default payment situation, wherein the company is not able to pay the monthly rent.
Leaf Round takes these risks very seriously and has, thus, put in some measures to get rid of them. This is done by practicing upfront monthly rent or levying a heavy penalty in case the payments are delayed. The asset risk is balanced through liability transfer to the person who will be using the asset, i.e the lessee.
Should You Invest In It?
If you are confused about whether it is a good investment for you or not, here are some key takeaways that will clear your doubts.
- Leaf Round prepares a risk sheet that contains more than 70 financial and non-financial metrics to analyze a business model. If the business stands firm on this sheet and clears the minimum score, Leaf Round moves further ahead with the lease terms and deal presentation for the users.
- The risk sheet is updated frequently every three months to analyze the company’s financial status and operations. The team of Leaf Round also screens the asset that is being presented on their platform for its resale value, expected life, fungibility, and various other measures.
- To increase the credibility of the returns, all the deals are backed by legal contracts that help in securing the monthly rent. If there is a possibility of failure of the asset, the team has the operational capacity through its partners to reclaim and thereby liquidate the asset. This minimizes any risk of a loss of capital for the investors.
After closely using the platform, going through the company profile, and the product offerings from Leaf Round here is my take on it.
If we look at the offerings of the platform, it does give some great deals to the investors. The monthly fixed returns and the buyback of the assets do mitigate the risk involved in these deals.
However, there are not a lot of options present on the platform as of now. You only get to choose out of the handful of options out of which some are already fully sold out. In such cases, users may not be able to find out their ideal investment.
Overall, Leaf Round’s revolutionary features include direct deposit of rent in the beneficiary’s bank account, buying back the assets after a fixed time period and the legal contracts that back the deals through legal contracts are impressive.
However, you can’t forget the fact that these assets will be only used by others and that you don’t have much control over their wear and tear. Unlike equity and other investments where do not lose any money until you sell it, Leaf Round’s investment models can highly damper your portfolio if there is an unfortunate event.
Even after backing the contracts with legalities and hefty penalties, Leaf Round is not bound to pay your lost money on its behalf. This is why it is indeed very risky to invest in these assets.
So, you can prefer Leaf Round if you are looking to make any Alt investment in the Indian markets. But, it is preferable that you only invest that amount which if lost won’t cause you financial strains, as this investment is filled with risks.
Make sure to mention your favorite part of this platform in the comments section below.
Is it necessary to attach my documents to invest in Leaf Round?
Yes, Leaf Round verifies every investor before letting them participate in any trade. You need to submit a valid PAN Card and Aadhaar Card to verify your account.
Who will own the asset during the tenure?
The asset will be fully owned by the investor till the maturity of the contract. After that, the ownership gets transferred to Leaf Round after the buyback.
What is the minimum amount I can invest on the platform?
You can begin your investing journey on Leaf Round with as low as Rs.5000.
Does Leaf Round charge any fee from the investors?
Yes, Leaf Round charges a very nominal fee for every deal. It is automatically deducted from the monthly rent received by the investor.
What is Depreciation?
An asset is continuously put into work in any business operation. Being machinery or equipment, it depreciates in its value due to wear and tear. This depreciation results in a reduced value of the asset and is known as depreciating value.