Discover Invisible Opportunities: 20 Unconventional Investment Avenues to Diversify Your Portfolio
Title: 20 Non-Traditional Investments to Diversify Your Portfolio
You already know about stocks and mutual funds as ways to invest your money, right? But there’s a whole world of less common investment opportunities out there. These non-traditional or “alternative investments” are growing in popularity, especially as online platforms open up access to everyone.
Here’s a simple definition – anything that’s not a stock, bond, or cash can be an alternative investment. Given how broad this definition is, there’re countless possibilities. We’ll give you a glimpse into various alternative investments and their pros, cons, and how much you should consider investing in them. Note that this information isn’t financial or investment advice, so make sure to research thoroughly before you put your money in any new investment!
1. **Cryptocurrency**: This digital form of money, like the famous Bitcoin, has surged in popularity over the years. Cryptocurrency offers the potential for high returns (and risk), and it tends not to correlate to the stock market. Just remember – only invest what you’re prepared to lose. There are several platforms like Public.com that take care of your security and even facilitate social networking among investors.
2. **Non-fungible Tokens (NFTs)**: NFTs are digital assets like digital art or music. They’ve gained popularity due to their high potential for profit. Mostly purchased with Ethereum, marketplaces like Rarible provide easy access to investing in NFTs.
3. **Real Estate**: Investment in properties, single-family homes, commercial buildings, or even renting homes can build wealth overtime. With real estate crowdfunding platforms like Fundrise, you can start investing with as little as $10.
4. **Real Estate Investment Trusts (REITs)**: If you don’t want the hassle of owning or managing a property, you can invest in REITs. They own a portfolio of properties, generate income, and pass that on to the investors.
5. **Farmland**: An attractive asset that can produce an ongoing rental income with low volatility. Platforms like AcreTrader facilitate investment in farmland.
6. **Art**: High-value artwork from notable artists can be a good investment. Masterworks allows you to buy shares of art pieces from renowned artists.
7. **Wine**: Investments in fine wine can be fruitful. Platforms like Vinovest and Vint make it easy to invest in wine.
8. **Small Businesses**: Platforms like Worthy Bonds and Kickfurther let you provide funds to small businesses, earning you returns.
9. **Precious Metals**: You can buy gold, silver, or platinum as an investment. Platforms like Unifimoney make this process quite easy.
10. **Oil and Gas**: Investing in this sector can offer decent long-term gains while introducing significant risk due to price volatility.
Other alternative investments include life settlements, structured settlements, antiques, collectibles, hedge funds, etc.
While it’s tempting to diversify your portfolio, remember that every investment comes with its risks and challenges. In general, it’s recommended to invest anywhere between 3% – 20% of your portfolio in alternative assets, depending upon your financial goals and investment strategy. Always ensure that you’re thoroughly informed before making a decision.
Finally, if you found this interesting, you may want to read our 9 Steps to Financial Independence article too. Don’t forget to check out these popular trading platforms:
Public, Moomoo, Webull – all offering commission-free trades of stocks, ETFs and cryptocurrencies! They have user-friendly interfaces with advanced tools for best results.
Disclaimer: This document is not a recommendation. You may lose money while investing. Always do due diligence and consult with professional advisors when dealing with investments.