Alternative Investments 101: Options to Consider Today [2021]

A truly diversified investment portfolio should also include “alternative investments.” By definition, these represent financial assets which do not fall into either of these conventional asset classes.

→ Diversification → Higher Potential Expected Returns → Not Correlated with the Stock or Bond Markets → Tax Benefits

Pros of Alternative Investments

→ Risk of Loss → Unfamiliar Assets and Risks → Tax Disadvantages / Complexity → Some Alternative Investments Require a High Minimum Investment → Some Alternative Investments Options are for High Net Worth Individuals Only → Illiquid

Cons of Alternative Investments


Commercial real estate creates a steady income from rent and the property values typically appreciate in value over time.

Invest in Crowdsourced Real Estate


Over the past several decades, farmland has consistently yielded returns over 10%; after all, the primary use for the land is food, and people will always need to eat.

Invest in Farmland


A REIT is a real estate investment trust, which is technical jargon for a type of real estate investment company that owns and manages real estate on behalf of a group of investors looking to earn passive income.

Real Estate Investment Trusts (REITs)


“Blue-chip” refers to well-established art and artists with high aesthetic quality. Long-term, fine art has shown to be a reliable and lucrative investment. However, multi-million dollar artwork is typically only an investment available to the extremely wealthy. 

Invest in “Blue-Chip” Art Investment Company Masterworks


They require collateral, specifically cryptocurrency, to back all loans made on the platform.  This secured loan represents a lower risk than a non-secured loan, all things being equal.

Secured P2P Loans with MyConstant


Buying expensive wines may be one of your favorite activities, but did you know it could make you money? As a tangible asset, wine has a low correlation with global equities and has less long-term market volatility than other investments.

Invest in Fine Wine with Vinovest

Swipe up for more of THE Alternative Investments 101: Options to Consider Today [2021]