Innovative Investments: 3 Types of Investments That are Gaining Ground

Are you looking for an investment that is not the same only boring stock or bond? Are you looking for an investment that may have more risk but may also lead to much bigger returns?

There are many such investment opportunities out there. They have been termed “alternative investments,” and, while in the past they were usually reserved for the super rich, now almost anyone can invest in them.

Today, we are going to look at 3 really good alternative investments. Investments that may just turn your financial dreams into a reality.

Market-Neutral Funds

Market-neutral funds have been getting lots of exposure in the media as of late. They are interesting in that they do not try to foresee whether the stock market will go up or down at any given time. Instead, the mangers of these funds take positions — both in the short term and in the long term — that they think will succeed no matter what direction the market goes.

These funds can offer a very high rate of return, but, because they typically involve lots of transactions, they also charge management fees that are significantly higher than most traditional funds.

Hedge Funds

We have all heard the term “hedge fund,” even if we do not all know what it means. For some it can seem like secret code for “helping the rich get richer,” but they really are just funds that use very high risk methods for generating returns for their investors.

Traditionally, hedge funds have been limited to accredited investors who have either earned $200,000 two years in a row, or have a net worth of at least $1 million. But lately a new breed of hedge funds called “virtual hedge funds” or “lite hedge funds” have become available. These funds are open to just about anyone, and they offer similar rates of return as traditional hedge funds. But they also offer similar risk.

Bitcoins and Other Cryptocurrencies

Bitcoins have been in the news a lot lately, as the price of them has swung up and down dramatically. Bitcoins and other forms of cryptocurrency are currency that exist in computer code. They are also exchanged on a computer, with transactions posted to a public decentralized ledger called a blockchain. The advantages of digital currencies are that they have very few transaction fees associated with their use, and that they give the owner a certain degree on anonymity. In most cases, not even the government knows who owns them.

Bitcoins can also offer very high rates of return. Last year alone, they rose more than 1,300%, and that was after a major slump in late December. While the prices of bitcoins and other cryptocurrencies remain very volatile, they offer the possibility of a return that few if any stocks can match. What’s more, any type of investor can buy bitcoins, and you can even buy some with PayPal from sites like Xcoins.io/buy-bitcoin-with-paypal.

In conclusion, we are no longer living in a world where ordinary investors are limited to stocks and bonds while the rich have all sorts of alternative means to even greater wealth at their disposal. Today, alternative and innovative types of investment are available to everyone with a few dollars and some big dreams.

 

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