From wine bottle to whiskey, five alternative investments to diversify your portfolio
Alternative assets have the potential to offer much higher returns than their traditional counterparts.
This is also one of the primary reasons why investors are attracted to it.
When someone says investing, we instantly think of stocks, SIPs, Mutual funds, etc.
But some investment assets are not affected by the ups and downs of the stock market graphs.
And investing in these alternative assets is an important step towards financial freedom!
These assets are generally privately held and thus the volatility is very low here.
Stock markets are very unpredictable even in a stable economy,
and alternative assets are a great way to save your investments from the swings of the public market.
Alternative assets have the potential to offer much higher returns than their traditional counterparts
Here's why they are a smart choice for portfolio diversification.
1. WINE BOTTLEYou can own a bottle of wine, keep it for as long as you want and then sell it at a much higher price.2. WHISKEYThe same is the case with investment in whiskey. Its value increases as it ages. Many people like to make a collection of limited-edition branded Whiskeys and are willing to bid a good amount for each bottle.
Here are other unheard alternative investment assets are:
1. Music Royalties: Help an artist in making his song, own certain rights over the music royalties and you get to earn every time that song is played.
2. Art: People are ready to pay an insane amount of money for art and paintings. Own paintings for a lower amount at auctions and sell them to the person who falls in love with them.
3. Litigation Finance: This is like making money through other people’s lawsuits.
You help a plaintiff with the finances of filing the case like transportation, lawyer fees, etc,
and then earn a percentage from the claimed money that he gets if he wins.