Invest With Aqua
Published in

Invest With Aqua

Types of Alternative Assets

There are a variety of types of alternative assets that individuals should explore in order to have a truly diversified portfolio. Here are a few of those alternatives:

  • Art and Collectibles

Art and collectibles are great ways to invest in unusual assets that can sometimes produce greatly outsized returns. Generally, ultra-high-net-worth investors are the only ones who invest in this asset class, as there are limited comparables and assets are often difficult to value. The asset class commands a great amount of risk-tolerance, often leaving out most investors.

  • Private Equity

Private equity is an asset class that has consistently generated steady and outsized returns in comparison to public market indices. Private equity involves ownership of companies that are not publicly traded. These markets are less volatile and less affected by the sentiments of the general public. Sales are less frequent, thus allowing investors to weather other economic and market conditions and only enter or exit positions when most advantageous.

  • Real Estate

Real estate is an asset class revolving around physical pieces of property and construction. The real estate market ebbs and flows, but generally is a safe place to park capital and generate stable and steady cash-flow.

  • Credit

Credit revolves around lending. This lending can be between a multitude of combinations of parties, but generally represents a regularly distributable asset class, making it attractive to investors seeking regular cash inflows. Credit also sits atop the capital structure, generally giving lenders greater downside protection than equity investors. That being said, upside is also generally capped, meaning that there is limited, if any, potential for great upside in the way that equity investments have the potential to yield.

  • Hedge Funds

Hedge funds are risk-managed portfolios of public equities that are targeting returns that outperform public indices. Hedge funds can come in a number of forms, varying generally by strategy. Hedge funds also offer greater liquidity than other more illiquid strategies like private equity. Over time, hedge funds have faced enormous pressures from the public markets, as volatility can greatly affect a fund’s performance.

  • Cryptocurrency

Cryptocurrency is an extremely volatile and unpredictable alternative. Cryptocurrency markets are highly correlated to technology and are generally hard to predict. At the same time, they offer a great opportunity for upside and can be hugely profitable if invested in correctly.

  • Commodities

Commodities are real, usable resources such as oil, wood, and gold. Commodities contain value because of their real-world applications.

With Aqua, retail investors are now able to access this sought-after asset class. We offer access to top-quartile private equity funds at low minimums and lowest-in-industry fees. Consider integrating alternatives into your portfolio to increase diversification and super-charge your returns!

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store