Alternative investments have been around for many years, and now, the number of investors having them keeps on adding up. Investors are looking for new opportunities due to some economic and structural factors. Soon enough, all investment schemes might view these alternatives as a common one.
These investments are also an excellent way of increasing passive investment capital because alternative markets won’t seem to stop growing soon, opening new investment gates as time passes by. If you’re planning on trying on these alternatives, you should know a thing or two about them first. So below are some investments that have high returns that can offer you many benefits.
Private equity
Private equity is a broad term encompassing the entire investment spectrum of the private capital markets, and different private equity firms specialise in multiple investment strategies. Private equity firms typically raise funds and take capital from both non-institutional and institutional investors. The funds will then be used to place investments in promising private companies. During an exit event like an initial public offering or acquisition when a firm takes over its management and performance fee, the money that investors initially invested will be returned to them. As mentioned, private equity is a general classification that includes the investment in start-ups, venture capital, and financing throughout phases of a company’s growth.
Start-ups and private companies
Investors can directly invest in start-ups and private companies as opposed to investing in a private-equity fund. Directly investing in start-ups, also known as angel investing, is one of the many high-return alternative investments. This is a high-risk and high return strategy for investors as many start-ups end up failing. A private company will seek investors through a private placement based on a certain valuation. Retail investors can participate in some offerings depending on the type of registration exemption the company relies upon. Companies seek investment capital throughout their life cycles’, so more mature companies can also be targeted for investment.
Precious metals
Having precious metals such as gold or silver is one of the most profitable alternative property investments UK because they don’t move in a cycle with standard assets. Gold is commonly regarded as a hedge against currency fluctuations and inflations. As a result, when inflations affect the buying power of a particular currency – say the euro weakens against the dollar – the price of gold tends to rise. Therefore, it is common to find sophisticated investors investing their money in gold during the market and economic downturns.
Commodities
Commodities like whole grains, meat, oil and natural gas can also be classified as one of the most profitable alternative property investments UK you can invest in. Commodities can be an important way for investors to diversify their portfolio. This is because the price of commodities tends to move in opposition to that of stocks, some investors also rely on commodities during periods of market volatility. Supply and demand are the driving forces within the commodities market. The scarcity of supply can impact the demand and lead to higher prices.
Cryptocurrency
Cryptocurrency can be an excellent substitute for alternative property investments. Some people personally never jumped into the hype, but that doesn’t mean there is no value. The digital currency has swept the media headlines in the last two to three years. Although some of the hype has slowed down, it’s still alive and well. There are no regulations currently and the volatility can be pretty wild, but this industry might stick around and improve in the years to come. If you do go this route, invest with caution.
Jewellery
Purchasing pieces of jewellery is one of the many high-return alternative property investments but can be challenging. You have to know the market and other things to look for when jewellery is involved.
Tax liens
If you own a property and you didn’t settle its taxes, the local government can offer this unpaid tax or tax lien to a person willing to pay for it. Investors can buy the liens in an auction, paying the amount of taxes owed in return for the right to collect back that money, plus an interest payment from the property owner.
Alternative investments enable investors to look for the most promising investment opportunities, regardless of location or type. If you have an asset class and geographical flexibility, you can boost your chances of earning a significant amount of money. You can have the opportunity to try on the offers of growing markets worldwide by looking beyond the traditional investment schemes and the neighbouring geographical areas. This way, you can earn money in many profitable ways, making investments anywhere the opportunity is available. Therefore, you should keep in mind the things provided above and choose what alternative you think works best for you and the amount of money you currently have.
Alternative Investments 