- 7 Lesser-Known Investment Strategies That Can Boost Your Portfolio
1. Investing in Art
Investing in art isn't just for the ultra-wealthy or art enthusiasts; it's a viable strategy for diversifying your portfolio. Art investments have shown to appreciate over time, sometimes even outperforming traditional asset classes like stocks and bonds. For instance, the Mei Moses World All Art Index has historically shown annual returns of around 7-8%. Options like fractional ownership platforms make art investment accessible to everyone.
2. Venture Capital Funds
While most people shy away from venture capital due to perceived risks, the payoff can be enormous. Venture capital funds pool money to invest in startups with high growth potential. For instance, early VC investments in companies like Uber and Airbnb yielded returns of thousands of percent. Although risky, diversification within venture funds mitigates some of this risk, providing opportunities for high returns.
3. Farmland Investments
Investing in farmland might sound old-fashioned, but it offers stable, long-term returns. Farmland investments benefit greatly from the consistent demand for food and agricultural products. Just like real estate, farmland can appreciate over time and provide rental income through leasing to farmers. Companies like Farmland Partners and AcreTrader are making it easier to invest in agricultural land directly.
4. Peer-to-Peer Lending
Peer-to-peer (P2P) lending platforms allow investors to directly lend money to individuals or small businesses, bypassing banks. P2P lending provides regular, predictable income through interest payments. Platforms like LendingClub and Prosper have democratized this space, enabling investors to diversify their lending portfolios to minimize risks. Typical annual returns range from 5-8%, depending on the risk profile.
5. Green Energy Investments
With increasing focus on sustainability, green energy investments offer both financial returns and positive environmental impact. Investing in renewable energy projects like solar, wind, and hydroelectric can be lucrative. For example, investing in solar panel companies or renewable energy ETFs has shown substantial returns. Moreover, government incentives and societal shifts towards greener practices make these investments more viable.
6. Investing in Cryptocurrencies
Cryptocurrencies are evolving beyond mainstream options like Bitcoin and Ethereum. Lesser-known altcoins and blockchain projects offer substantial growth potential. While highly volatile, investing in promising ICOs (Initial Coin Offerings) and lesser-known tokens can generate significant returns. However, thorough research and risk management are crucial given the nascent nature of this market.
7. Water Rights Investments
As global water scarcity becomes a pressing issue, investing in water rights is increasingly important. Water rights investments involve acquiring the legal rights to water resources that can be leased or sold to farmers, municipalities, and industries. In regions like the western United States, water rights have become a critical asset. Companies like Water Asset Management focus exclusively on this niche but impactful market.
7 Lesser-Known Investment Strategies That Can Boost Your Portfolio
- Consider investing in art through fractional ownership platforms.
- Explore venture capital funds to diversify and leverage high growth potential.
- Look into farmland investments for stable, long-term returns.
- Use peer-to-peer lending to generate regular income through interest payments.
- Invest in green energy projects to support sustainability and earn returns.
- Diversify into lesser-known cryptocurrencies and blockchain projects.
- Acquire water rights to capitalize on global water scarcity issues.