The term alternative investments encompasses a wide variety of offerings. Alternative investments are considered to be almost any investment other than traditional options. Alternative investments are an increasing trend, making a rise among members of the investment community. Historically, these investments were not generally suitable to the public due to their complexity and structure. But, nowadays investors should consider both the regulated and unregulated markets when building and maintaining an investment portfolio.
Who are alternative investments for? According to December survey from Spectrem’s Millionaire Corner, half of high net worth investors who had $5 million to $25 million in assets to invest, are interested in alternative investment products. High income investors with $200,000 income or more likewise indicate a high level of interest in in alternative investments. Finally, practically one-third of investors who describe themselves as “most aggressive” or “aggressive” indicate an interest in alternatives, as do 41 percent of investors who consider themselves very knowledgeable about investing. Why is it that all these rich investors have an interest in alternatives? Alternative investments, like those opportunities offered by investing in shipping containers, tend to be a safer option than stocks and provide an opportunity for investors to diversify their portfolio.
Alternative investments are not only suited for rich investors but for anyone who can understand them. With new opportunities comes new risks and rewards. Investment-seekers must understand their products to make the best knowledgeable decision. Some alternative investments depend on different factors than traditional methods as a source of income. For example, investments like shipping containers are in high demand, solely due to the pace of the shipping industry. This investment, like many others, is not yet mainstream due to the lack of visibility to the public. Though investments like this are expected to soar and increase their customer base, only investors who are knowledgeable in these strategies, will decide to invest.
Rich investors make decisions to invest within alternative investments because they gather insight and see the potential. Alternative offerings tend to be a safer option than traditional investments, and consistently provide favorable returns to investors. One common barrier that holds investors from investing in alternative options is the information. Alternative investments are a broad term and there are many types of these investments.