Hedge, Home, and Coins: Unconventional Investment Schemes for Your Portfolio

rare coinsAn investor’s portfolio is his collection of investments, assets, securities, and funds. Investors put their money in different markets to improve their portfolios and protect their money.

The conservative ones invest in stocks, bonds, mutual funds, all of which are liquid assets. Others, though, take risks on nontraditional investment approaches for significant prospective returns.

Hedge Funds

For years, hedge funds have been criticized because of the high risks. Return is not guaranteed, and not everyone can invest in this scheme. The U.S. Securities and Exchange Commission only allows accredited investors who are capable of keeping themselves safe from the financial risks of hedge funds.

The fund managers come up with strategies to make the pooled capital from investors earn. How are they paid? Typically, through the two and twenty structure. Regardless of the investment’s performance, fund managers are paid two percent of the pooled capital. Then, they earn 20% of the profit if the fund performs well. This is why money managers work extra hard.

There are many high-profile investors who seek hedge fund investments, says Alpha Wealth Funds. Interested investors located in Park City can sit with a hedge fund manager to discuss business.

Real Estate

A real estate is a great investment. First, an investor gets to acquire a home. Second, the property appreciates. Real estate properties are limited, and over the years, the demand for them gets higher.

An investor can choose to rent out their property – residential or commercial. This generates monthly rental income.

Collectibles

At times, nostalgia drives people to buy specific items that defined a period. This is how collectibles like old comics, rare coins, trading cards, and vinyl records become an investment.

Items today will be considered collectible in the future if they have the quality of rarity. At the time of sale, investors can mark up the item. But, first, they have to invest in the maintenance of the item.

Every so often, there are new investment schemes that interest investors. Those who are economically secure are willing to take the risk for potential profits. An investment is a gamble. Investors can play safe with traditional approaches or go big with risky, unconventional methods.