Why Alternative Investments Matter
Alternatives offer something traditional investments can’t always provide: true diversification. When markets swing wildly or inflation eats away at returns, many investors look beyond stocks and bonds to balance their portfolios.
What counts as an alternative investment? Think real estate, commodities, private equity, hedge funds, collectibles, fine wine, renewable energy projects, infrastructure, litigation finance, royalties, even music rights and NFTs. If it doesn’t fall neatly into a stock, bond, or cash bucket, chances are it’s an alternative.
And space is booming. Demand for access to alternatives has exploded in recent years, especially as crowdfunding for alternative investments now puts what was once reserved for institutional investors or the ultra-wealthy within reach of individuals.
A few reasons why alternatives are worth considering:
- Potential for higher returns compared to traditional investments
- Low correlation to stock and bond markets, which can help manage risk
- Access to emerging trends and industries before they go mainstream
- Portfolio diversification beyond conventional assets
But here’s the catch: navigating this market used to be tough. Minimum investments were high, transparency was limited, and opportunities were often invite-only. That’s changing fast.