Investing can provide an effective way to maximize capital and generate an additional stream of revenue. Of course, the trickiest part of investing is deciding exactly what to invest in and what level of risk to take. If you want to move away from traditional options, like stocks and shares, take a look at these three alternative investments that are ideal for today’s businesswomen:
If you already have experience in Forex trading, investing in cryptocurrency could be a natural transition. Buying, selling, or holding digital currency allows you to increase your capital, providing the value of your currency rises. To do this, you will need a secure cryptocurrency wallet to hold your funds.
2. Seed Investments
Becoming a seed investor gives you the opportunity to grow your capital and use your business expertise to help other entrepreneurs succeed. Millions of startups are actively looking for funding and many of them present lucrative opportunities for the right investors. When you can use your professional experience to help grow the company, you increase the likelihood of generating an impressive return.
3. Peer-to-Peer Lending
As the financial industry evolves, people are borrowing money in different ways. Peer-to-peer (P2P) lending gives you the opportunity to loan funds to borrowers and to generate a return in the form of interest. Numerous P2P lending marketplaces are already up and running, so it’s easy to establish yourself as a lender. Furthermore, you can choose to lend as much or as little as you like, so you can familiarize yourself with the process before you decide whether to invest a significant amount.
Are Alternative Investments Risky?
The level of risk involved in alternative investments varies. P2P lending, cryptocurrency, and seed investing are considered relatively high risk but there are other alternative investment opportunities that are lower risk. Real estate is considered to be an alternative investment, for example, but is rarely seen as high risk.
Although many alternative investments do involve a moderate or high level of risk, this does mean that they can offer high returns too. While you may not want to invest all of your capital in a high-risk investment opportunity, it could be an effective way to diversify your portfolio and increase your returns.
Finding the Right Investment Opportunity
The right investment for you will depend on a number of factors, such as the amount you want to invest, the level of risk you’re comfortable with, and how quickly you want to withdraw your funds. If you’re unsure what type of investment is most suited to your needs, it’s well worth getting professional advice. By talking to a financial adviser or an investment manager, for example, you can create a bespoke portfolio that matches your goals and gives you the best chance of growing your capital.