Looking For More Excitement In Investments? 9 Ways To Incorporate Alternative Investments Into Your Portfolio | Personal Finance News

“Such non-traditional assets break outside the ordinary humdrum staples of the market and bring new ways of diversification and potentially better returns. From hedging against market volatility to just doing something different or merely mixing up a portfolio, alternative investments can be interesting opportunities,” Vinnaayak Mehta, Founder, The Infinity Group told Zee Media in an exclusive interview.

Imagine a portfolio mimicking, somehow, the performance of the stock market, yet including a couple of unique assets that complement your traditional investments. Such alternatives can grant preferable advantages by hedging against inflation and giving exposure to emerging trends. 

Mehta shared nine creative ways one can incorporate alternative investment into one’s portfolio that range from hassle-free real estate to high-return venture capital and rare collectables. Check them out.

Real Estate Crowdfunding

In real estate crowdfunding, one can say it is a club wherein peers pool their money to fund investment projects in real estate. You don’t need a fortune to be part of this; just a bit of capital will do. It’s quite an exciting way of earning passive income through rentals and appreciation of property value without buying entire buildings.

Peer-to-Peer Lending

Mehta sai, through peer-to-peer lending, one can lend money to different people or small businesses and earn interest. This is one way to diversify a portfolio and probably help someone start or expand their business while earning your return.

Private Equity

Private equity investments can be into private or public companies subject to a management buyout. The activity is more hands-on and usually serves as a longer holding period in comparison to the buying of public equity, but it can pay big dividends if the underlying companies perform well. 

Explore Commodities

Commodities such as gold, silver, and oil are not only for traders; including them in your portfolio can be quite smart. They would predominantly hedge against inflation and generally bring some stability to your portfolio when traditional markets are shaking a little.

Invest in Art and Collectibles

If you have an eye for the unique, then art and collectables could be worth considering. Everything from classic cars to rare stamps to fine wines can make these items more than just beautiful; they can be appreciated. 

Venture Capital

Venture capital means investing your money in highly potential, fast-growth startups. It’s much riskier but incredibly rewarding if they become the next big thing. You can directly invest or do so through a VC fund; that’s how innovation is financed while seeking high returns.

Managed Future

Managed futures include the investment in different categories of futures contracts, such as commodities, currencies, and so on. Professional managers try to make money from these investments—and the market upswing and downswing do not matter. It’s a good way to diversify using a manager to help manage risks.

Hedge Funds

Hedge funds are investment vehicles that require complex strategies for high yields within wide-ranging market conditions. They come with higher minimum investments than conventional forms of investment and usually have management fees associated with them. However, hedge funds offer more sophisticated techniques and potentially better returns for their shareholders. They prove to be very flexible and can harness a wide arsenal of tactics to steer their way forward in different markets.

Invest in Green and Sustainable Projects

If you truly care about the environment, why not invest in green and sustainable projects? From renewable energy to eco-friendly agriculture, it can be done to support a greener future with a possible return.

“The aim of adding alternate investments to a portfolio is not just to seek higher returns, but to shake things up and possibly go after new opportunities. Each of these has its unique set of benefits and risks, so it’s important to do a little bit of homework to understand what might work best for you based on your financial goals and interests. These creative investment avenues will help you construct a livelier and interesting portfolio, better prepared for all the curveballs life throws,” said Mehta.