investors attracted alternative investments

Less Risk, Better ROI Makes Alternatives More Attractive

In order to earn a decent rate of return on investment, investors have had to get creative with their investing strategy. This has meant introducing alternative investments to their portfolio. Whether they invest in containers, collectibles, or precious metals, their prime motivation is to distance themselves from the investments they would traditionally hold; such as stocks and bonds.

Many novice and expert investors are making the move to alternative investments because there is less risk involved, better performance/returns, and a wider variety of investing options to choose from.

Risk

There was a time when alternative investments were reserved for affluent investors with a high tolerance for risk. Nowadays, these alternatives are more well-established and have a proven track record. As a result, investors have more confidence and believe there is less risk associated with them. This makes them much more attractive to investment-seekers.

Performance

In addition to the lower exposure to risk, many alternative options are consistently performing better than their traditional counterparts. As a result, they are delivering a much better return on investment. Again, this makes alternative investments much more attractive to investment-seekers.

Variety

With traditional investments, there is little variety to choose from. Certainly there are different company stocks, and bonds from different corporations and countries; but, essentially a bond is a bond, and a stock share is a stock share. On the other hand, alternative investments offer a number of exciting investing options, in an increasing number of profitable sectors.

Shedding Traditional Investments

The increasing number of options, partnered with lower risk and better returns, has the investment community reassessing their portfolio holdings, and shedding traditional investments that aren’t meeting their needs. From fine wine to shipping containers, and real estate investments, investors can find a variety of alternatives to replace the traditional assets in their portfolio.

Published by

Sarah Paige Andrews

I am an independent investor with an affinity for alternative investment offerings. To educate myself, I research and report on nontraditional options.