5 Alternative Investment Vehicles To Consider
Have you ever heard the term “Never put all of your eggs in one basket.”? Well, there’s no place where that’s more true than in the world of investing. At the end of the day, you never want all of your investment in one asset, one vehicle, or one figurative basket of any kind. After all, if that one basket falls apart your investment falls apart along with it. So, today, we’ll talk about some great alternative investment vehicles that you may want to consider for diversification.
Investing In Art
Most of the time, when we think of investing, we think of buying stocks, bonds, and possibly precious metals. However, there’s another form of investing that many would consider to be more rewarding. That is investing in art. You see, buying the right piece of art could potentially provide a strong return on your investment. While market and economic conditions may falter, art from the right artist will often hold its value.
Investing In Real Estate
Real estate investing is becoming more and more popular, and for good reason. At the end of the day, people are starting to realize that although populations grow, the earth does not. There’s only so much real estate that is available, and because of that, the cost of real estate consistently gains. At first glance, you may think “I don’t have the money to invest in real estate”, but chances are that that’s not true. The truth is that there are several pieces of land available for just a couple thousand dollars that 10 years from now may be worth tens of thousands of dollars.
Investing In Hedge Funds
Another great alternative investment to look into is hedge funds. You see, these funds have incredibly talented people on their payroll, and what they do, is take the money that you give them and work to grow it. So, they make their own stock picks and you’re essentially investing in their talents. They say that smart money follows big money. Well, a smart choice for investing your money may be to invest it with a big hedge fund!
Investing In Financial Derivatives
Derivative investing is another great way to diversify your investment portfolio. Derivatives themselves, like binary options, have absolutely no value. Instead, their value is derived from movements in the value of the underlying asset they represent. If the price of a particular asset moves in a particular direction, you end up seeing profits on your investment.
Investing In Ventures
We have all seen venture capitalists on television. You know, the billionaires on shark tank that buy pieces of smaller companies as investments. Well, there are just about always great venture capital opportunities out there, and you don’t have to pony up massive amounts of money to get involved. While investing in small business can be risky, it can also be incredibly rewarding. You may also be able to crowdfund your investments with other people via the internet if you don’t have huge amounts to invest.
At the end of the day, investing in stocks and bonds are just two ways to go about putting your money to work for you. There are tons of other options out there. To ensure that you protect your investments through hard times and gain big during good times, it’s always a good idea not only to diversify assets, but also investment vehicles.