The term “Alternative investment” encompasses a wide range of investment vehicles and asset classes. Typically it will include tangible assets such as precious metals, wine, art, antiques, coins, and stamps. It may also include other financial assets such as commodities, hedge funds, venture capital, and private equity. Other more traditional investments of stocks, bonds and property are also touted as alternative investments, although strictly speaking they are not.
During the recent global recession that has subsequently kept interest rates low, more investors than ever have turned to Alternative investments to try and achieve a higher return on their savings.
However, investors should proceed with caution, the saying “all that glitters is not gold” is very appropriate when applied to Alternative investments.
The rush to get involved with Alternative investments has prompted a lot of boiler room type operations to set up fraudulent investment schemes that are designed solely to fleece unsuspecting investors.
As with all investment decisions you may make, do your homework first before you commit, ask for the relevant due diligence. If anything doesn’t stack up or it looks too good to be true, it probably is so walk away.
- What makes an investment alternative? (valuewalk.com)
- Brian Ranwick, JD Joins FactRight as Alternative Investment Product Analyst (prweb.com)