Alternative investments are gaining traction. An estimated 80 percent of young investors are allocating more of their portfolios to investments that fall outside of the more classic categories like stocks and bonds, a study from Bank of America in October 2022 found.
What are the different types of alternative investments, and are they worth adding to your portfolio?
What are alternative investments?
“Alternative investment” is essentially a catch-all term for any asset that doesn’t fall into the three conventional investment categories stocks, bonds, and cash. They can range from private equity and venture capital funds to real estate and cryptocurrency. Alternative investments “typically fall into four categories: hedge funds, private equity, ‘real assets’ such as real estate or commodities, and prepackaged investments known as ‘structured products,'” explains CNBC.
Volta Finance Ltd (LON:VTA) is a closed-ended limited liability company registered in Guernsey. Volta’s investment objectives are to seek to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis.