Alternative investments are a form of investing that differs from more traditional investment options such as stocks and bonds. These alternative investments can include everything from real estate, green energy, commodities, hedge funds and private equity to art, wine, watches and much more. While alternative investments can be more complex and risky than traditional investments, they can also allow you as an investor to diversify your portfolio and achieve higher returns.

One of the main benefits of alternative investments is that they often have lower correlation with traditional investments. This means that if the stock market falls, alternative investments can still provide positive returns and vice versa. This can help mitigate risk in a portfolio and provide a more stable return profile. In addition, alternative investments can also provide access to markets and assets that would otherwise be difficult or impossible for private investors to invest in.

Benefits of alternative investments

Alternative investments are usually less liquid than traditional investments and can also be riskier. However, they can also have the potential to provide higher returns than traditional investments and can provide diversification in a portfolio.

Evaluating alternative investments can be difficult as there is no standardized way to measure their value. As investors, you can use different methods to evaluate potential returns and risks, including looking at historical returns and risk profiles, as well as consulting experts in the field.

Diversification

One of the main benefits of alternative investments is diversification. This is because alternative investments don't usually correlate with traditional investments such as stocks and bonds. This means that alternative investments can allow you to spread your risk and reduce your exposure to market fluctuations.

Potential for higher returns

Alternative investments can also have the potential for higher returns because they are usually less well-known and less liquid than traditional investments. Many alternative investments are operationally based and have low correlation to the traditional stock market. This can mean that as an investor, you may be able to achieve higher returns than you would by simply investing in more mainstream assets.

Types of Alternative Investments

Private Equity

Private equity is a type of investment where a company buys a stake in a business and then works closely with the company to increase its value. This can include injecting capital, implementing strategic changes and improving operating performance. Private equity firms usually invest in companies that are mature and have the potential to grow further.

Hedge funds

Hedge funds are a type of investment fund that usually use complex investment strategies to generate returns. These strategies can include using leverage, short selling and derivatives. Hedge funds can invest in a wide range of assets, including stocks, bonds, currencies and commodities.

Commodities

Investing in commodities can provide diversification to a portfolio and can protect against inflation. Commodities include investing in physical goods such as gold, silver & platinum (precious metals), copper iron aluminum & lead (metals), as well as oil, natural gas, coal & uranium (energy)

Real Estate

Investing in real estate can be a good investment as properties often increase in value over time, while also providing a stable income through rental income. You can invest in different types of real estate including residential, commercial, hotels and logistics properties.

Green Energy

Green energy is a term for energy generated from renewable energy sources such as solar, wind & water. In addition to a positive impact on the environment, investing in green energy has several advantages such as stable returns and low correlation with the stock market.

How do I get started investing in alternatives?

Alternative investments can be a great way to diversify your portfolio and potentially achieve higher returns. However, they can be more complex and risky than traditional investments, so it's important to consult a professional financial advisor and research the market thoroughly before investing in alternative investments. 

If you want to know more about alternative investments, you can read more here:

• You probably have too few alternative investments
• Investing in real estate
• Investing in renewable energy

You can access investments in alternatives through the Selected Alternatives fund, which includes solar energy, wind energy, real estate, and green infrastructure.

The investment is only suitable to experienced investors as defined in the Financial Services (Experienced Investors Fund) Regulations 2020. Furthermore, the minimum investment is EUR 100,000 and is subject to compliance with our subscription and onboarding process.

To learn more about your alternative investment options, please fill out the form below.