There’s nothing wrong with investing solely in stocks and shares, but if you’re after some excitement from your portfolio or want to try something different then it’s time to expand your horizons.
Whether you’re a seasoned investor or a curious beginner, it’s easy and rewarding to start investing in other markets.
Here are three of our favourites.
Those with an artistic eye could consider making money by investing in art – a great way to insure yourself against potential stock market crashes, since the value of art isn’t affected by market forces in the same way as many other investments. Buying a work by an up-and-coming artist can see you net a great profit if they become more successful, but it’s very important to do your research and understand what you’re buying.
Some companies also offer the option of buying a share of a well-known painting – what’s typically known as blue-chip art – the type of work that is typically far out of reach for ordinary investors. This can reduce the risk associated with art investment, since you know that the piece you’re buying will be of interest to collectors in the future.
Cryptocurrencies are decentralised currencies, such as bitcoin, that are stored and transferred entirely digitally. The technology used to process cryptocurrencies mean that they can be far more secure than traditional currencies, and also offer more privacy. For investors, there’s another huge benefit: the volatility of the crypto market means that the value can increase significantly and rapidly.
Crypto can be a long-term investment, but the whims of the market mean that it can be more suited to short term trading. This means purchasing smaller amounts of cryptocurrency when the price is low and then selling it on as soon as the price increases. This is a great way to get started with crypto, as there’s a lot of support out there to help beginners get started with trading. Software such as bitcoin era will automatically make trades for you, so you can start investing without needing to become an expert.
If you’re interested in supporting small businesses with your investment cash, then equity crowdfunding could be an interesting opportunity. Be warned though: the performance of your money will depend on how well your chosen business succeeds with its product or service.
Equity crowdfunding is the means by which smaller businesses get investment cash from the general public. In return, you get some equity in the company, essentially meaning that you earn a very small slice of it. It’s a really good way to use your money if you’re particularly concerned about helping local businesses to thrive. However, it can be quite risky, so only invest with money that you can afford to lose.
It’s important to do your research before making any type of investment, as you want to understand where your money is going. Once you’re happy you understand the market, moving beyond stocks and shares can be a great way to spice up your investment portfolio. It also has the potential to make more money, or to allow you to use your funds for a good cause.