Investing In Alternate Assets: The Beginners Guide

 

The team at Incomet has always believed in the ideology of not putting your eggs in the same basket! This is what we teach our students as well while training them under the best stock market course in India; while in our program the diversity revolves around the stocks, let us apply that ideology to assets beyond the stock market today!

What Exactly Are Alternate Assets?

Let’s keep things easier to understand, any type of assets that aren’t stocks or bonds are alternative assets! This might immediately give you the picture that alternative assets revolve around real estate, however many tangible collectibles such as fine wine or art can also be termed as alternative assets!

Investing in private companies or start-ups also qualifies as investing in alternative assets.

Collectible Assets Vs Investments In Private Companies or Start-Ups

Collectibles that are worth investing in are mostly only affordable by the ultra-rich. Whereas, investing in a start-up or a private company at its initial stages is something that is accessible to most.

However since there is aspect of regulation that comes into play with alternate assets. Especially with private companies who are under no obligation to reveal earnings or financial information or even report to shareholders, finding information on such type of assets can be really hard.

Physical Assets

If you are a beginner then understanding the stock market can be quite overwhelming (unless you have the best teachers guiding you through this journey) while cryptocurrencies have proven to be extremely volatile. In case you do not have the time to understand the basics of the stock market and want to hold off that journey for the time being then opting to invest in physical assets is an attraction.

When we speak of physical assets, we mean assets that hold some value and that value may appreciate in price. For example, fine wine has returned 127% over the past 10yrs! There are multiple reasons for this to happen as well, it could be the scarcity of a particular brand or just the product getting better with age. The collectible industry does have some substance attached to it.

Liquidity of Alternate Assets

Alternate assets are fairly illiquid, let’s compare the scenario of trying to sell a 100-year-old bottle of wine with the scenario of selling 1,00 shares of a billion-dollar public company, and we’d get the answer.

What Alternative Assets Should You Be Investing In?

The answer to this is very simple, invest in what you love. In case you are a car fanatic then go for them, in case you are into vintage watches then they are your best bet! The point is to love the activity while you are doing it. We at Incomet, while training our students to make great investments in the stock market, also make sure that the students fall in love with the ideology behind the stock market as well! Always remember that work that you love doing, isn’t really work.