prabhu
How diversified is your portfolio? In the event of an economic dip, do you think it would be spread wide enough to weather the storm? There are plenty of advantages to diversifying a portfolio, but it can often be tough to think of new methods beyond stocks and property. Below, we give you three unique investment opportunities you may wish to consider.
Sport
Sport brings in a huge amount of revenue and capital, particularly in London where many major events are taking place. Thus, investing in sporting ventures is a safe bet, as the public’s voracious appetite for it is not linked to global markets or economic turmoil. Generally, people keep supporting and paying to see their favourite players and teams, and sponsors keep on endorsing them, whatever the climate.
The tough part is finding a way to invest in the first place. Opportunities are few and far as most clubs and teams do not sell shares. Instead, you could become part of a consortium to buy a team. Perhaps you will get a Hollywood star as a business partner, much like Ryan Reynolds with the Wrexham football club.
One sport that is easy to invest in is horse racing. This is because you can buy racehorses, or purchase shares in them. When the horse wins, you will take a cut of the profit. If a whole racehorse yourself sounds like a lot, then companies will let you get into racehorse ownership for relatively low amounts. This is a great way to try the investment out before going any further. Of course, the bonus is that you also get to watch your racehorse on the track.
Collectables
Collectables cover quite a wide range of consumer goods that are not classified under commodities, and usually can’t be found through traditional retail avenues. Antiques and artwork are the most obvious examples of this. However, there are many other ways to invest, from wines, whisky, vintage cars, musical instruments, coins and even trainers.
The idea is that you purchase the items and over time they accrue value. You can then sell or auction them at a later date. The key to this is choosing something you are interested in and know a lot about. Not all collectables are as valuable as many people think. They may also fall out of popularity, as certain generations who once valued them age and become less attached. Like anything, collectables have fashionable periods so knowing when to sell is just as valuable as knowing when to buy.
Peer to Peer Lending
Peer-to-peer lending is a relatively new concept, that involves lending money without the involvement of a bank. A lender signs up to a peer-to-peer lending company, of which there are many, and puts their money in a pot with other people investing. This money is then loaned out for personal or business use.
As the lender pays the money back, you are paid back the monthly sum. This has an interest payment added so you make money on the investment. Very often, these are higher rates than that which you would get with standard savings accounts.
All investments carry a risk. Make sure you only invest what you can afford and set your sights on a long-term investment. With the right research, you may just make a healthy return.
