Billions of people aspire to financial security, and for good reason. It means peace of mind, and having options. Investing is one of the best ways to build wealth for the future. Traditional investments such as stocks and bonds have become more popular over time and while these are still great options, there are some more unconventional investments that may be worth considering.
Here are 4 of them.
Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs) are a good option for investors who want to invest in real estate without having to buy and manage physical properties. REITs allow you to purchase shares in an already established portfolio of real estate assets. This means that you get the advantage of having a diversified portfolio while still enjoying the benefits of real estate investing.
When investing in REITs, you should consider the type of investments they are making, how well-managed the fund is and its track record for success. Read through their financial statements and any other documents related to the trust so that you understand exactly what you’re investing in.
Peer-to-Peer Lending
Peer-to-peer lending is a great alternative to traditional banking and is becoming increasingly popular with investors who want access to higher returns. With peer-to-peer lending, you lend money directly to individuals or businesses through online platforms. This allows you to lend money with much greater control and flexibility than a traditional bank would provide.
When considering a peer-to-peer lending company, research to make sure they have a solid track record of success and understand their terms and conditions. You should also be aware of the potential risks associated with peer-to-peer lending, such as default risk.
Art
Art has been seen as an appreciating asset for centuries, with some paintings even appreciating thousands of percent over time. Investing in art requires a lot of research and knowledge about the market, however, so it’s important to do your due diligence before investing.
You want to be aware of the potential risks associated with it such as market fluctuations and authenticity issues. It’s also essential to research the artist you are considering and make sure that their artwork has a consistent track record for success. Finally, it’s important to understand the potential tax implications of investing in art.
Startups
Startups are a great way to get in on the ground floor of a potentially successful company. Investing in startups allows you to support entrepreneurs and be part of their success story, while also giving you access to potentially high returns.
When investing in startups, it’s prudent to understand the potential risks such as lack of liquidity, market volatility, and the risk of failure. Do your due diligence on the companies you are considering investing in and make sure they have a solid business plan, and make good management decisions – like having strategically placed point of purchase signs where applicable. Finally, understand the tax implications of investing in startups.
These 4 unconventional investments each offer unique advantages and potential returns. It’s important to do your research and understand the potential risks before investing in any of them. With a bit of knowledge, you can use these investments to diversify your portfolio and achieve greater long-term financial success.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin