Check Out These Alternatives To Stocks

The word’ investment’ has become associated with stocks and bonds, as a result of which we often miss out on other avenues. These alternative avenues may not be not as popular as the traditional ones. Still, they can help you diversify your portfolio and help you manage your financial interests better. In today’s article, our objective is to identify these alternative investments.

Before exploring them, you should note that these alternative investments may or may not be regulated by the regulatory authorities, are generally not as easily convertible or saleable, and do not necessarily follow the market’s mood. Considering these things, you should invest in the options provided below. Here are five alternatives to stocks to check out: 

1. Real estate
   One of the first options that come to mind is real estate investment. It means you invest in an intangible asset such as land or intellectual property. They are all real assets and are very, very popular options. By investing in real estate, you can generate profits regularly through rents, whether from residents or businesses operating on the land. The property’s value will likely appreciate, provided it is managed and maintained well. But, before investing, ensure you have undertaken solid value estimation. 
2. Art
   The Rich have taken a fascination for art. You will often hear or read about their high-profile visits to art galleries and museums and participation in auctions. But, investment in art requires a lot of research and thinking. You must have patience as the value of good artwork appreciates in time, but the process is not immediate. Moreover, one cannot simply invest money in any art; its contemporary relevance, prospects, the underlying theme, etc., will have a key impact on whether or not it will sell profitably in the future.
   Then, there is also the rise of Non-Fungible Tokens (NFTs), where there is potential to earn immensely, but they are subject to high volatility. There are no standards regarding the evaluation of the digital artwork that can be auctioned in an NFT space; as a result of which, anything, even a picture of a trash can, can get you millions of dollars. But, the NFT market is expanding and developing as we speak, and it is yet to see how far we can experiment with it. 
3. Private Equity
   You may consider investing in a private, unlisted company. Such capital investment comes in many forms, such as venture capital, in which investments are made in startups, or buyouts, in which a company or any segment is purchased. Before investing in this, ensure that you have checked with the authorities regarding the credentials of the company you are interested in. Generally, seasoned investors go for companies that enjoy a significant reputation in the market. 
4. Commodities
   Investors often pump money into natural resources and other real assets such as equipment. These assets are not vulnerable to the moods of the capital market; supply and demand determine their value from time to time. For example, you invest in a commodity reasonably estimating that its demand is going to rise in the future and hence, a good avenue for profit-making. These forms of investments have been there for quite some time and, thus, can be a good source of income. 
5. Hedge Funds
   Last but not least is a Hedge Fund. Hedge Funds are investment pools that professionals manage. These professionals resort to an array of strategies to generate more than average investment returns.
   Now the risk associated with these funds is that these professionals have the discretion to use any strategy, even those that most investors usually avoid. Moreover, these funds are not usually completely regulated, so there are doubts regarding the practices of the managers. If at all you wish to invest in a hedge fund, then you must focus especially on the reputation and credentials of the managers. Hedge funds are risky, so you must entrust only the most capable with your money.

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