Investment Guide
Explore different investment options to help you build wealth and achieve your financial goals.
Alternative Investments
Alternative investments are financial assets that don't fall into the conventional investment categories of stocks, bonds, or cash. These investments tend to be less liquid than traditional options and often require a longer investment horizon.
While potentially offering higher returns, alternative investments typically come with higher fees and more risk. They can provide diversification benefits because they often have a low correlation with standard asset classes.
Common Alternative Investments
Real Estate
Includes residential or commercial property, REITs (Real Estate Investment Trusts), and real estate crowdfunding platforms.
Private Equity
Investments in private companies that aren't listed on public exchanges. Typically requires significant capital and longer time horizons.
Hedge Funds
Actively managed investment pools that use advanced strategies such as leveraged, long, short and derivative positions.
Commodities
Physical goods such as gold, silver, oil, or agricultural products. Can be invested in directly or through ETFs and futures contracts.
Cryptocurrencies
Digital or virtual currencies that use cryptography for security, like Bitcoin, Ethereum, and others.
Key Considerations
- Liquidity RiskMany alternative investments cannot be quickly sold or converted to cash without a substantial loss in value.
- Higher FeesAlternative investments often come with higher management fees and performance fees compared to traditional investments.
- Complex StructuresThese investments can be more difficult to understand and evaluate compared to stocks and bonds.
- Potential for Higher ReturnsThe complexity and risk of alternatives may be rewarded with returns that outperform traditional asset classes.
Alternative Investment Options
Companies that own or finance income-producing real estate across a range of property sectors.
Funds that track the price of commodities like gold, silver, oil, or agricultural products.
Platforms that connect borrowers with investors willing to lend money for an agreed interest rate.
Digital or virtual currencies that use cryptography for security and operate on decentralized networks.
Actively managed investment funds that use pooled funds and employ various strategies to earn returns for investors.
Investment data updated hourly. Last updated: 9:00:15 AM
Are Alternative Investments Right for You?
Alternative investments can be an excellent way to diversify your portfolio, but they're not suitable for everyone. Consider these factors before investing:
- •Your investment goals and time horizon
- •Your risk tolerance and financial situation
- •Your current portfolio composition
- •Your knowledge of the alternative investment space