Want to grow your investment portfolio beyond the usual stocks and the like? Alternative investments can be an exciting option. These investments have the possibility for higher returns and a way to spread out investments, which can reduce the risk of significant loss. Unlike regular investments, alternative investments can be dangerous and less liquid, making it more difficult to sell them quickly if you need the money. This article explores five solid alternative investment platforms to consider in 2024, helping you start on your path to a more diverse investment portfolio.

Why Choose An Alternative Investment Platform?

Alternative investing platforms could be an excellent approach to investing your huge wealth in lots of different areas. You can invest in assets other than stocks and bonds via these platforms, such as property, art, and other untapped businesses. This can help you make greater profits from your assets while spreading your risks. Think of it as having a mix of eggs in different baskets; even if one basket falls, your other eggs are still safe.

Things to Consider When Choosing a Platform

Not all alternative investment platforms are equal. Before deciding on one, consider the following points:

Minimum investment

This is the least amount of money you need to start investing with the platform. It obviously varies from platform to platform. Choose one thats within your budget.

High Fees

Platforms charge fees in different ways. Some take an upfront fee, while others take a sneaky percentage of your profits. Its important to know all the fees involved before you invest.

Investment options

Alternative investments include many opportunities, like real estate, art, or other untapped businesses. Choose a platform that offers options youre interested in.

Track record

Look for a platform thats been around for a while and has a good reputation. Check online reviews and testimonials and see what other investors are saying.

Liquidity

Some alternative investments are less liquid than stocks or bonds, so be aware before investing. You cannot just cash out, even in dire need!

5 Alternative Investment Platforms

Fundrise

With the help of this platform, you can invest in real estate without the hassle of buying a whole property. Sounds unreal, right? Fundrise lets you invest in commercial and residential buildings through a process called real estate crowdfunding. This means youre pooling your money with other investors to buy a piece of a larger property. Fundrise requires a minimum investment of only $10, which is absolutely crazy because this means anyone can start without much capital. They also have a user-friendly website and a good track record, having been around since 2012. However, its important to remember that real estate is a long-term investment, so your money will be tied up for a while.

Arrived Homes

Similar to Fundrise, Arrived Homes allows you to invest in real estate but with a twist. Here, you can invest in single-family rental homes. This can be a way to earn rental income and benefit from any property value increase over time without needing plenty of capital. Arrived Homes requires a minimum investment of $10,000 (Higher than Fundrise). One unique feature is that they let you see photos and learn details about specific properties youre interested in. Since managing rental properties can come with headaches, Arrived Homes does take a cut of the rent collected.

Collectable

What do you think of owning a piece of trading card history or a rare sneaker? Collectable makes that possible. They let you invest in collectibles like sports cards, trading cards, and even watches. Its definitely a fun way to make money while investing in something youre invested in (pun intended). Collectable requires a minimum investment of $10, making it accessible to everyone and their dad. They also offer a unique feature called fractional shares, which allows you to own a small piece of a high-value collectible. However, the collectible market can be unpredictable, and theres no guarantee that your investments will increase in value.

ARK7 Real Estate Investing

If youre interested in a platform focused solely on commercial real estate, ARK7 Real Estate Investing could be a good option. They offer a variety of investment opportunities in office buildings, retail spaces, and even industrial properties. ARK7 requires a minimum investment of $5,000, which falls in the middle range compared to the other platforms mentioned. They emphasize their focus on data-driven investment strategies, which might appeal to some investors. Be aware that commercial real estate can be more unpredictable than residential real estate, meaning your investment could be worth less if the market goes down.

Zoya

Zoya is a platform for Sharia-compliant investing. This means they avoid investments that involve interests, bonds, or activities seen as unethical (or unlawful). Zoya offers a variety of Sharia-approved investment options, including stocks, exchange-traded funds (ETFs), and Sukuk (Islamic bonds). Their minimum investment amount varies depending on the specific investment chosen. A major benefit of Zoya is their focus on helping you build a diverse Sharia-compliant portfolio. They also offer features like screening tools to quickly find Sharia-compliant investments and automatic Zakat (Islamic charity) calculation. But the catch is that the investment options are limited.

Conclusion

Alternative investment platforms are an appealing way to diversify your portfolio and potentially boost your gains. Regardless, its important to remember that these investments also come with added risks. Carefully consider your financial goals and risk tolerance before you go into any of the ventures. Are you open to tying up your money for longer periods? Are you comfortable with the idea of your investment losing value? These are some of the questions you need to ask yourself. While this article provides you with general top-of-the-iceberg information about these investment platforms, doing your own deep research is also necessary when deciding to go for an investment platform. Spend quality time comparing different options available on the market and know what youre getting intothings like fees, investment options, and potential risks involved before you invest any money.