Alternative Investments

What Are Alternative Investments?

Alternative investments don’t fall into the “traditional” financial investments realm such as stocks, bonds or mutual funds. Once reserved for ultra-wealthy people and institutional investors, today anyone can invest as they are readily available in a range of assets and strategies. With bank interest rates for savers being so low, there are other investment products that give a better rate of return.

Alternative Investment Characteristics

Alternative investments can be used as a way of reducing investment risk through diversification. Some characteristics might include:

  • Low correlation with traditional financial investments such as stocks and bonds
  • Alternative investments might be not be so liquid
  • Costs of purchase and sale may be relatively high
  • A high degree of investment analysis may be required before buying
  • May offer “low risk” or “absolute return on investment”

Alternative Investment Risks

When deciding on an investment it is worth seeking professional advice before risking capital. Common investing risks include:

  • Difficult to determine the current market value of the asset
  • There may be limited historical risk and return data
  • Non regulation of product
  • Geo political volatility

Investment Options

Investors like spreading wealth over a range of investments which includes having tangible assets. These assets include shipping containers, real estate, precious metals and fine art. Alternative investment products can come in many forms. Some investments such as student accommodation or purchasing car parking spaces will often offer a set return by way of an annual interest rate on the amount invested.

Some investment options could include:

  • Student accommodation units
  • Storage units
  • Fractional ownership in holiday homes
  • Gold/Silver
  • Private placements
  • Shipping containers
  • Peer to peer lending programs
  • plus many more ….

When looking at an alternative investment, consider asking yourself these questions:

  • Is my capital preserved
  • What are the risks involved
  • What is the minimum term of investment
  • Is there guaranteed returns
  • Can I liquidate my investment quickly

Our Current Investments

Capital Guarantee | Collateral Assignment | Off Market Real Estate

Investment Due Diligence

Be sure when subscribing and investing in these alternative investments, you know the risks. There are other things to keep in mind so we absolutely recommend you seek legal advice and financial advice before considering investing your money. Some non sec companies have testimonials or can provide recommendation to the product. Ask them what pitfalls are there. These websites can help with your due diligence:

  • Rip Off Report
  • Sec.gov
  • Scam Advisor
  • Plus many more …