Our way of investing it changes. Technology makes investing easier and more accessible than ever. Meanwhile, Generation Y and Generation Z are moving away from public equity investments
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These changes have led to an increase in alternative assets. People are increasingly looking for new and innovative ways to approach investment. But are alternative assets really the new frontier of modern investment?
What is an alternative asset?
As the name suggests, alternative assets are an alternative to traditional assets, such as stocks, bonds and cash. The term generally describes unconventional investments. This can include anything Honus Wagner baseball card at bottles of good wine. However, it can also be applied to more familiar investments, such as real estate and private mortgages.
Bottom line: alternative assets are things you probably wouldn't show up when you meet your financial advisor. They are not easily categorized, which makes them more difficult to manage. Often people invest in alternative assets because of a passion for the asset rather than for the immediate return on investment.
What makes alternative assets an attractive investment?
Investors will go where there is money to win. This includes alternative assets. In addition to higher potential returns, alternative assets have characteristics different from traditional assets. Here are some factors to consider when considering alternative assets:
Portfolio diversification
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