The best investment you can make in life will always be on your self-growth. In what way can you best invest your money to grow, away from the traditional stock market?
The stock market is a great way to build wealth, but it’s not the only option. Some investors may benefit from adding alternative investments to their portfolio. One reason is for diversification and the other is some of these alternative investments can reward higher returns way above the stock market.
When making any investment you should always factor in the risk element.
Risk varies depending on which investment you choose and its market volatility. You must also consider the amount of money you put in and the time you expect to get the returns.
There are so many ways to invest and making investment decisions solely depends on your personal goals and circumstances. What works financially for one person doesn’t always apply to another person. If you’re a dad with a family, your investment choices may need a closer look compared to a single man with no kids or commitments.
List of 8 Best Investments Not On The Stock Market
1. Fine Art
To invest in art, some would suggest you need to be an expert and know the ins and outs of the art world, the latest trends, or upcoming artists. This isn’t the case anymore. You can now invest in art just like in the stock market with platforms such as masterworks.com. Art is a long-term investment with a window of 3 to 10 years or more to reap the rewards.
2. Land
An asset class that will stand the test of time and more than likely give you the best returns, depending on location and demand. Land is a brilliant investment that comes in many forms to purchase. It can be rural, residential, commercial, or development sites. Being a landowner is great for generational wealth building because you can pass it down to your kids, your kids, kids and so on. Check out Addland.com
3. Crowd Funding
Crowdfunding has the potential to be lucrative for investors. Depending on the type of investment involved, it’s possible to match the market or even beat it. Wondering how it works? It’s essentially new business owners looking for money to finance their start-ups. They raise money from the public, i. e the “crowd” through crowdfunding websites such as kickstarter.com
4. Peer-to-Peer Lending
In this concept, you lend your money through a P2P platform to borrowers who have undergone pre-screening based on their credit score and affordability. This provides borrowers with an alternative to a bank loan, resulting in higher interest rates charged to them and higher returns for you. Popular platforms such as Kuflink say you can earn up to 9.38%.
5. Franchise
This investment requires a bit more of an active role from the investor. A franchise model is when an existing business owner (franchisor) sells the rights for a third party (franchisee) to trade under its name. McDonalds and Domino’s Pizza are running this way. You get the perks of running a well-known brand as your own business and enjoy the profits too. It can be costly. Domino’s Pizza requires a £280,000 down payment while Fireaway Pizza only requires £55,000. See What-Franchise.com
6. Gold
Despite its lack of everyday usefulness, this precious metal still maintains its value. People see it as a way to pass on and preserve their wealth from one generation to the next. Gold is seen as a way to hedge inflation and doesn’t lose its value because of it, unlike fiat currency (government-issued currency). If we have a digital disaster, having a physical asset isn’t such a bad idea in hard times. RoyalMint.com
7. Fine Wine
You may be shocked to learn that the global wine market is valued at £350 billion and is predicted to grow to £500 billion by 2028. Those are some numbers you can’t ignore and there are plenty of reasons why you should consider fine wine as an addition to your portfolio. It’s tangible, it’s in ever-growing demand, it’s a hedge against inflation, it’s tax efficient and exempt from capital gains, historically as an annual return of 15%. WineInvestment.com
8. Crypto Currency
BitCoin was the first Crypto currency on the market back in 2009 and since then there are roughly 10,790 in existence. Its type of digital currency that relies on a decentralised system using cryptography for verification and record-keeping, instead of a central authority, such as a bank. You can buy, sell, spend, and trade it, but it’s not common in everyday use. Expedia, Microsoft, and Dell are among the well-known retailers that now accept payments in cryptocurrency. Investing in Crypto can make you some serious life-changing returns with triple digit ROI and some serious life-changing losses too. Crypto.com
As you can see, the stock market isn’t the only place to grow your hard earned cash. There are many ways to diversify your investment portfolio, do the research, seek advice and see what you’re comfortable in pursuing for the short, medium or long-term.
If looking at the above alternative investments and considering to put your money in them. Just remember don’t invest unless you’re prepared to lose money. The FCA (Financial Conduct Authority) suggests you ask these five questions before you invest.
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