Alternative Investments: 5 Ways to Expand and Diversify Your Portfolio

When you think of investment opportunities, you may think about an investment portfolio that contains the stock market stocks, bonds, mutual funds, index funds, and more. But did you know that there are alternative investments as well?

For instance, you could invest in a private company or with a private equity firm. Or you could invest in real estate. There are so many options.

If you are ready to learn more about alternative investments, keep reading!

1. Cryptocurrency

Over 59 million people own some form of cryptocurrency. Cryptocurrency is not directly related to the stock market. However, it is a form of investment to make money.

There are so many different types of cryptocurrencies that you can even diversify your portfolio within the cryptocurrency realm as well.

Some of the most popular are:

  • Bitcoin
  • XRP
  • Ethereum

And now, crypto has NFTs as digital forms of investments. Click for crypto art.

2. Private Equity

Private equity is investing in non-publicly traded companies. This means that if you invest in this type of equity, you may have your money tied up for upwards of 10 years. However, during a merger or selling, you could come out with much more than you invested in the first place.

Before you invest in private equity, you should always do your research and know what you are getting into.

3. Hedge Funds

There are multiple hedge fund strategies. For instance, you could invest in long-short equity which means you invest in a company that could appreciate. However, you could also sell short or bet against the company to gain profits.

You can also go with a market neutral strategy to reduce risk.

You could also invest in different strategies to try to get the biggest return.

4. Real Estate

Another great investment option is real estate. You can buy a home or property to rent out to others to gain money on the purchase.

Whether you rent it out as a vacation home or to long-term rentals is up to you, but it will also depend on location and popularity of a place to determine what type of rental you go with.

5. Commodities

This is a rarer form of investment, but many people still do it. This is when you invest in goods like coffee or crude oil. You have to get in on it when the contracts come out during set times in the year.

You can also sell contracts to get ahead on invest in fast growth stocks the next one as well, so it’s important to stay on top of the commodities¬†and what is happening with the market.

Alternative Investments

Investing in the stock market is a great option, but it is not your only option.  You can also look into alternative investments like real estate or cryptocurrencies.

Did you enjoy learning about other ways to make money? Check out other similar posts on our blog ot learn more!

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