This is because a good investor must not invest all his or her resources into one business venture. There are, of course, the familiar investments such as stocks and bonds, but there are also a number of other types of investment that you may not have heard of that could help to strengthen your portfolio.
1. Real Estate Crowdfunding: This option allows you to get involved in real estate investment without having to purchase real estate properties. Applications such as Fundrise and RealtyMogul allow investors to contribute money for the construction of commercial or residential properties, thus giving a chance to invest in real estate with comparatively low amounts of money.
2. Peer-to-Peer Lending: You can invest in money market funds at websites like LendingClub or Prosper and then get paid interest as borrowers use your money to obtain loans. This type of investment can generate more profits than the regular savings account but has the risk of doing so.
3. Commodities: Investment in physical commodities such as gold, silver or farm produce is also a good way of diversification as they act as a hedge on the value of your investments in times of inflation and market volatility. Commodities can be purchased directly or indirectly through an ETF that shares the same price of the commodity.
4. Art and Collectibles: Art, antiques, or collectibles can be hobby or investment. Masterworks and other websites allow investors to invest in shares of expensive paintings and other pieces of art to place in their portfolios.
5. Cryptocurrencies: Despite the fact that they are very speculative, cryptocurrencies like Bitcoin and Ether are potentially profitable. Digital assets investment is another way of reducing risks and tapping into new markets of technological innovations.
This way, you will be able to come up with a better investment plan that will help you manage your investment and get better returns from your investment while at the same time managing risks that are related with the market.