Tangible assets that’s what I consider investment everything else is a fallacy
Rich Dad
Alternate Investments are investment instruments that are not part of conventional investment portfolio. That is a definition from dictionary. But, for me alternate investment is something that act as a hedge and safeguard loss of money in time of crisis. The amount of risk associated with alternate investments can be super low and returns can be super high but it all depends on the initial investment requirements. One of the well known alternate investment is real estate but the minimum amount required to put this asset into your portfolio is way above a common man’s limit. In this post I am going to share my favorite alternate investments which doesn’t require extremely high amount of initial investment.
Commodity
Commodity is the very first thing that we think of when it comes to hedge. The favorites are Gold and Silver. And these two commodities are easily available. Gold has been good over the years but I personally don’t like investing in Gold as its value is more of emotional than real value. The fundamentals of gold are not good as it doesn’t have any real use except show off. However, due to its beauty it has been used as a monetary instrument in the past. And thus will come to monetary use the moment Paper currency is dead. Silver is far safer comparatively. Silver is fundamentally strong has real-world usage and is also used as a monetary instrument. But, above both of these there is platinum my favorite commodity.
Platinum has wide usage and not so readily available the demand to supply ratio is far low compared to gold and silver. As the human civilization become more advanced in technology platinum is going to get expensive. We also have Crude Oil and Natural Gas. The problem with these is they are only available as futures in mcx market. And futures are not that easy to trade. However, if you do see any opportunity to invest in any of these don’t give it a second thought. Then, we have raw commodities like wheat, rice, etc. But, sadly these are not available to trade. But, if you could build storage houses and store rice in it. You can make some handsome gains. Commodity is also included in the definition of tangible assets of rich dad.
Partial Ownership
Partial ownership is not a new concept but it was not possible before now to partially own something without any legal disputes. In old times people used to create a pool of money and used to buy real estate, businesses and other assets and then fight over who owns how much. But, today you can can just create an account on strataprop if you want to buy real estate as a part of pool. When you buy from these online retailers you get proper documents clearly stating that you own that piece of property and there is no dispute. Moreover, these platforms make real estate more liquid you can sell whenever you like and exit the deal. There are platforms like gripinvest that allows you to buy startup equity.
However, partial ownership of startup is not recommended for everyone. Real estate has been tested against time and is an incredibly good hedge. I would recommend investing in commercial real estate as the market for commercial real estate is on the rise.
Asset Leasing
Asset leasing is simply leasing any tangible asset you own to someone else for use. The most popular form of asset leasing is real estate leasing. But, in modern world you can lease much more than just real estate. You can lease equipments required by some business in exchange for a fixed monthly income. There are certain platforms that allow you to do just that. They buy tangible assets on your behalf and pay you back in monthly installments with a fixed rate of interest. As it is a fixed income asset it also has the ability to act as an hedge.
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