Diversifying your portfolio is essential if you want to keep your money safe and increase your chances of finding winning bets. Here are some unique ideas for portfolio diversification!
People and ideas
When people think of peer-to-peer, or P2P, they often think about music and video game piracy! But P2P lending is actually a form of investment – and yes, as the name suggests, it is essentially an investment from one person in another person. P2P lending usually involves a platform through which investors bid on particular loans. These loans are being requested by people who need funding for a business idea. Many have reported an annual return of 6-16%, but you need to ensure you investments are diversified here; spread your capital across several smaller loans instead of taking a chance on one very ambitious entrepreneur.
Oil and energy
When people talk about money along with oil and energy, they’re usually talking about ways in which to save money by decreasing their use of those things. That, or they’re talking about wild expeditions on which they’re planning on striking oil in the desert and making millions off of the discovery. But it’s actually possible to invest in the industry itself. You can read about it at Oil and Energy Investor. Because of all the developments in the field and its expanding global reach and importance, you could definitely do a lot worse when it comes to investing in a particular industry.
Structured notes
A structured note is a type of debt obligation. And no, that doesn’t sound as sexy as investing in real estate or gold. ‘Debt’ and ‘obligation’ are two words that a lot of people would really rather not here. You can also use the term ‘debt security’ to describe structured notes. The return you get from structured notes is based on many of the same things that determine returns from other sorts of assets, such as equity indexes and interest rates. They actually work a lot like bonds; the difference is that you get to set your own terms, instead of having to stick to the rigid terms you usually get with bonds. Banks and other sorts of financial institutions are typically the ones that provide them. However, you should be aware that they have a long liquidity and are very vulnerable to market risk.
Precious metals
This doesn’t exactly seem ‘unique’ right? After all, who hasn’t heard of people investing in things like gold and silver? And hasn’t pretty much everyone considered it at some point? Actually, this isn’t necessarily true. People have been giving precious metals a bad name recently. People seem to think it’s too “obvious” to invest in gold; there’s also the fact that gold functions better as a safety net, rather than something that’s going to increase in value tenfold and make you bucketloads of cash. But, at the end of the day, precious metals investing has many advantages. It’s stable and works brilliantly as a means of keeping value locked away. If you want things to be a bit more exciting, you could consider investing in precious metals like rhodium and platinum instead of gold and silver.
