What are Alternative Investments? Meaning and Types

Investing in India is undergoing a subtle but major transformation. Younger, technology-savvy investors are now searching for unusual, high-potential investments instead of just sticking to stocks and funds. These are known as alternative investments because they are not part of the public markets and can give investors another chance at better returns, diverse portfolios and a way to support new businesses before others. With more people able to save and learn about finances, crypto is rapidly becoming a popular and effective way to build wealth.

Types of Alternative Investments in India

  1. Real Estate

Fund managers in India continue to prefer real estate highly. People often purchase real estate by obtaining it directly or using REITs. They help you earn income from rent payments and from steadily rising property values.

  1. Private Equity and Venture Capital

Building a portfolio with shares from startups or private organisations. There is a lot to lose if things go wrong, but a lot to gain if the company does well. Nowadays, we see more startups getting funded by joining syndicates, angel networks and platforms.

  1. Hedge Funds

Funds supervised by professionals that apply different tactics, like short-selling, arbitrage and leverage. Generally open to institutional or wealthy investors.

  1. Commodities

In India, gold and silver have long been preferred as alternative choices. Investors now turn to oil, natural gas and agricultural products—either by holding them or by purchasing commodity ETFs.

  1. Collectables

From vintage vehicles to beautiful paintings, unusual timepieces to wines, collectables are both meaningful to own and valuable. The price of many collectables is based on whether it is rare, in high demand and what is happening in the market.

  1. Unlisted Shares

Shares of companies that are not yet listed on stock exchanges. Usually, you can only get them by making a private arrangement or using a dedicated platform. Liquidity goes down, yet early access can be profitable before a company gets listed.

Why are Investors Turning Towards Alternatives?

India is experiencing more popularity for alternative investments because markets and investors’ preferences are shifting. With real estate, private equity, unlisted shares and collectables, you get variety and a way to make gains, but these can be risky unless you study them properly. Stockify is making it easier for people to get involved in a quickly growing sector—unlisted shares. If you want to invest in India’s next big private company or expand your investments in alternative markets, check  Stockify. 

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