What is an alternative investment?

An alternative investment is an investment that doesn’t fit into one of the more traditional asset classes of cash, stocks and bonds.

There are many different types of alternative investment (including property, peer-to-peer loans and venture capital), and there are two key forms - tangible and intangible. 

Many alternative investments offer generous methods of tax-efficient investing, and are particularly popular with experienced investors. 

 

A defining feature of alternative investments is their low level of correlation with traditional investments, meaning they could be a valuable tool for experienced investors looking to diversify their portfolio. 

As we mentioned above, are there are too key forms of alternative investment - tangible and intangible. 

Tangible assets generally have a physical form, while intangible assets are also known as financial assets.

Examples of tangible alternative investments include;

  • property
  • art
  • wine

Examples of intangible alternative investments include;

  • venture capital
  • private equity
  • hedge funds

 


 

MAVEN Bonds are an IFISA provider specialising in fixed term property bonds.

Against a backdrop of low interest rates and a volatile stock market, the IFISA can provide an attractive investment opportunity for experienced investors. 

With the ability to hold peer-to-peer loans and debt-based securities, IFISA investments have the potential to generate higher rates of return than more traditional investment routes for investors with a greater appetite for risk.

To find out more, download our free IFISA guide.