Alternative Assets
Expand beyond the ordinary
Alternative assets reflect a shift toward broader, more resilient investing – expanding beyond traditional markets to capture uncorrelated growth.
Diversified Wealth
Alternative assets represent a shift toward broader, more resilient investing. Instead of relying solely on traditional markets, investors are embracing new avenues that behave differently, strengthen long‑term stability, and adaptive wealth‑building strategies.
Beyond Markets
The rise of alternatives reflects a mindset change—one that values uncorrelated growth and adaptive strategies. As access expands, more investors can build portfolios designed to weather volatility and capture opportunity in new ways.
Resilience by Design
Alternative assets embody a deliberate move toward diversification and durability. Once exclusive to institutions, this approach is now opening up, empowering more investors to build portfolios that are stronger, more flexible, and built for a changing world.
Alternative Assets — Expand Your Toolkit Beyond Stocks and Bonds
Alternative assets encompass investments outside traditional public equities and fixed income. They include tangible holdings such as art and real estate, structured private-market vehicles like private equity and hedge funds, and digital-native instruments including cryptocurrencies and NFTs. Once largely reserved for institutions and high‑net‑worth investors, alternatives are increasingly accessible as investors pursue uncorrelated return streams and greater portfolio resilience.
Key Asset Classes
Green Finance refers to financial products, services, and policies that support environmentally sustainable outcomes. It covers a wide spectrum of activities, including:
Crypto
Definition
Assets such as cryptocurrencies, tokens, and blockchain products enable P2P transactions without intermediaries.
Why it matters
They provide upside potential and new utilities like decentralized finance, staking rewards, and programmable money.
Considerations
High volatility and shifting regulations require secure custody, disciplined risk management, and clear exit strategies.
How to invest
Use regulated exchanges or funds, apply dollar-cost averaging, store coins in hardware wallets, and set exit rules.
Collectibles
Definition
Tangible collectibles including fine art, rare coins, trading cards, and classic automobiles prized for scarcity, provenance.
Why it matters
Value is driven by scarcity, provenance, and cultural demand, and collectibles often show low correlation with public markets.
Considerations
Successful investing requires authentication expertise, insured storage, documented provenance, and disciplined timing.
How to invest
Buy via dealers, auction houses, or vetted marketplaces; obtain appraisals, insure holdings, and track provenance.
Private Equity and Venture Capital
Definition
Investments made directly or through funds in private companies spanning multiple growth stages worldwide markets.
Why it matters
They can deliver strong returns via active management, operational upgrades, and exposure to early innovation.
Considerations
They can deliver strong returns via active management, operational upgrades, and early‑stage innovation opportunities.
How to invest
Participate through funds, co‑investment deals, or platforms; review track records, fees, and interest alignment.
Real Estate
Definition
Ownership through properties, investment trusts, or fractional platforms offers diversified exposure to assets.
Why it matters
Real estate generates income, provides tax benefits, hedges inflation, and enables leverage with value‑add strategies.
Considerations
Key factors include property management, market cycles, financing risks, and liquidity constraints requiring careful evaluation.
How to invest
Invest via direct purchases, REITs, or fractional platforms; analyze markets, test financing, and budget operating costs.
Other and Emerging Alternatives
Definition
Commodities, hedge funds, structured credit, and tokenized assets including fractional real estate or digital art.
Why it matters
These alternatives expand investor tools for managing risk, enhancing yield, and pursuing thematic global exposure.
Considerations
Each category presents unique liquidity, valuation, and regulatory challenges requiring careful professional assessment.
How to invest
Choose commodity ETFs, hedge fund offerings, structured credit vehicles, or tokenization platforms; verify transparency.
FAQ
Allocations vary by investor profile, but many allocate 5–20% depending on risk tolerance, time horizon, and access to expertise. Begin conservatively and scale as you gain experience.
Accessibility has improved through REITs, fractional platforms, interval funds, and tokenization, though some strategies (direct private equity, high‑value art) remain capital‑intensive.
Liquidity ranges widely: REITs and some tokenized assets can trade relatively frequently, while private equity, art, and certain collectibles may take years to monetize.
Valuation methods differ by asset: market comparables for real estate and collectibles, discounted cash flows for private companies, and market prices for tradable tokens. Valuations can be subjective and infrequent.
Tax treatment depends on asset type and jurisdiction—capital gains, depreciation, collectibles tax rates, and pass‑through structures may apply. Consult a tax professional for tailored guidance.
They can if they exhibit genuinely low correlation to public markets, but some alternatives (venture capital, crypto) are highly volatile and may not provide smoothing benefits.
Work with reputable dealers, verify provenance, obtain third‑party appraisals, use insured storage, and rely on trusted custodians—especially for high‑value physical and digital assets.
Leverage can amplify returns but also magnify losses and liquidity stress. Use leverage only with a clear understanding of downside scenarios and sufficient liquidity buffers.