If you have built up wealth through savings, in a business or through an inheritance, your money can ‘work for you’. In other words, you can receive income from the return on your assets.
However, leaving it in a savings account will not yield enough; you will have to invest your assets. There are various options for investments. The best known are investing in stocks and bonds, directly or through investment funds. Less common, but more interesting, are the Real World Maritime Assets, which have their own characteristics and advantages.
What Types of Investments Are There as an Alternative to Stocks or Bonds?
Quite a lot actually. You can invest in companies that are not listed on the stock exchange, private equity. You can do this yourself one-on-one with an entrepreneur, via a private equity fund or via a crowdfunding platform. You can also invest in maritime assets’, shipping , raw materials, infrastructure and land area. You also have private investment funds; hedge funds and cryptocurrency, a world apart. And of course the business loans.
Characteristics of Alternative Investments
Alternative investments consist of alternative assets. For example commodities, venture capital, real world maritime assets and others such as works of art, collector cars or intangible assets such as patents.
They have no correlation to traditional assets. In other words, they do not follow the behavior or evolution of the financial markets.
The spectrum of investors usually consists of people with high wealth and purchasing power. Also state funds, foundations or large investment or pension funds.
Investors can invest by acquiring these assets directly (buying the car from the collector or the land) or by subscribing to shares in alternative collective investment vehicles, such as venture capital funds or alternative investment funds.
Standard investments – Alternative investments
Shares – private equity
Bonds – Hedge funds
Notes – Cryptocurrency
Investment funds- maritime assets
Derivatives- Business Loans
Are Alternative Investments Riskier?
That is often thought and it is the case for some alternative investments. Take private equity where you invest in young or start-up companies. If it runs well, the return can increase much. If it goes wrong, you just lose everything. But other alternative investments, such as real world maritime assets, have – if you do it right – a lower risk profile.
Is an Alternative Investments Suitable for Everyone?
What we see is that numerous people opt for alternative investments to spread their assets more. If you have not linked part of your assets to broader market developments, this can be beneficial when those markets are underperforming. With regard to our product marinecoin is the token that will enable fractional ownership of ships that generate income, global payments, remittances & operational expenditure by shipping companies worldwide.
Precisely because of their non-correlation with traditional assets, alternative investments can circumvent market risk and diversify a portfolio of traditional assets. They also subtract volatility. Alternative investing potentially generates higher returns, especially in low interest rate environments.