Real Estate Investor December 2020 December/January 2021 | Page 10

TRENDING ALTERNATIVE INVESTMENTS

Low risk , high reward

The benefits of alternative investing

NICHOLA LOOCK
Investors are often motivated by the mentality of ‘ no risk , no reward ’, but , there are alternate investment models which can deliver better returns at lower risk . What classifies as alternative investing and what are the benefits beyond their high profitability ?

While alternative investments differ from traditional

investments , they share a common benefit : the opportunity to build wealth and achieve financial freedom over time . It ’ s hardly surprising that yield-hungry investors are focusing their attention on alternative investments , which yield can yield up to 20 % per year .
Because the term is so all-encompassing , it ' s often easier to define alternative assets by what they ' re not rather than what they are . According to Investopedia , alternative investments are asset types that fall outside the realm of traditional investment opportunities . These more conventional categories include cash , stocks and bonds .
8 DECEMBER / JANUARY 2021 SA Real Estate Investor Magazine