Alternative Investments 1.docx

Past: It has been 10 years since alternative investments burst onto the scene. In 2009, after the financial crash, they were the mutual fund story, gathering much of the industry’s headlines. Hundreds of alternatives funds were launched over the next several years. Exchange-traded funds followed suit, with offerings that ranged from staid to highly speculative. The timing was poor; with one notable exception (more on that later), equities have since pounded all rivals. For stock-heavy investors, alternative investments have come in two flavors: 1) mostly useless and 2) thoroughly useless.

Wine: Fine wine was the best investment of the decade, with the top French vintages earning returns that far outstripped equities, gold and property. The average price of a fine Bordeaux red jumped 138% in the noughties, equal to a gain of 11% a year, with the most sought-after labels, such as Laffite Rothschild, up almost 10-fold. The Liv-ex Fine Wine Investable Index, which tracks the price of notable Bordeaux reds from 24 leading chateaux found that between 31 December 1999 and 31 October 2009 there was a 138% return on investments across this range. The best performer was Laffite Rothschild 1982, which cost £2,613 for a case of 12 bottles at the beginning of 2000 and sold at the end of last month for £25,500, a return of 876%. Behind the price surge is a limited supply and an influx of new-money buyers from China and the rest of Asia. Specialists reckon that, as China continues to industrialize, prices for fine wine will continue to soar.

Classic cars: Classic cars enjoyed a huge boom in prices in the 1980s, followed by a painful crash in the early 1990s. But despite a decade renowned for City bonuses, relatively little of it has poured into classic Ferraris, Mercedes and Aston Martins. Coys, the UK's leading auctioneer of classic cars – which also holds sales in Monaco, Italy and Germany, says that while the most sought-after cars have accelerated in price by 200% or more, the majority have stayed in the middle lane, enjoying rises of between 10% and 50% over the past decade.

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It is almost impossible to accurately measure the return on art over the past decade. Auction prices are only of limited help as they don't take account of the large amount of art sold privately for undisclosed prices. It's also hard to measure the decade's increase in value unless the same works of art came up for sale both in 2000 and 2009 – and not many have. A few facts, however, may shed light on the decade's price trends, at the top end of the market at least. First, total sales of all art worldwide at Christie's auctions came to £1.5bn in 2000, compared with £2.8bn in 2008. That's an increase of 87%.

Present: Most people think of investing as buying stocks, bonds, mutual funds, or exchange-traded funds (ETFs). The more adventurous might think about a real estate investment trust (REIT). Some people also might consider buying stocks of mining companies or investing in a metals ETF as a way to invest in gold, silver, platinum, and other metals. But what if you want to avoid anything that trades through a broker or online discount broker? That's where alternative investment opportunities come in. Some of them can make you a lot of money, and some of them may make you a more modest profit. Either way, you're not trapped into choosing stocks, bonds, mutual funds, and ETFs that are traded publicly. When you start thinking about alternative places to put your money, you must avoid scams and get-rich-quick schemes. Instead, focus on legitimate investment vehicles that may help you prosper. Here, we've selected five types of legitimate alternative investments to consider in 2019.

Peer-to-Peer Lending: Peer-to-peer lending also known as P2P lending, is a relatively new phenomenon. Online P2P services offer loans for businesses, personal use, or anything else you can imagine. If you join the pool of investors who are willing to loan money to others, then the loan can be funded by you once the borrower qualifies.

Real Estate: When investing in real estate, you can buy and own property. You buy a house, duplex or multi-family dwelling, like an apartment complex, have tenants live there, and collect rent. In many cases, you make a down payment, and the bank finances the rest. You get the rental income and appreciation from the property.

Gold: Gold is widely regarded as a tangible inflation hedge, a liquid asset, and a long-term store of value. As a result, it is often a sought-after asset class and can be a strong competitor in stocks.

Gold is regarded as a great diversifier because of its low correlation with other asset classes, especially stocks. This becomes more pronounced in tougher times when gold can act as a rescue asset.

Owning Your Own Business: You can use your money to invest in your own business, which has the potential to produce the highest returns of all your investment choices. It can also fail and cost you a lot of money and sorrow. However, it's possible for your businesses to produce a steady income and grow over time. Some businesses have very low startup and ongoing costs. These include virtual or online businesses, like teaching, consulting, coaching, and IT support.

Equity Crowdfunding: If you don’t want to own your own business, you may want to consider owning part of someone else’s. Startup companies that need money can offer shares of their companies on equity crowdfunding websites. These sites include AngelList, CircleUp, Seed Invest, and We funder, and more. If you invest in a company over an equity crowdfunding site, you own part of it and will be rewarded if the company succeeds. The risk is that if the company fails, you lose part or all your money.

Future: This report examines the forces driving today’s alternative investment industry and considers where these may take the industry in the coming years, focusing on the core asset classes of private equity buyouts, hedge funds and venture capital. The goal of this report is to provide readers in the global investment and financial services industries with a perspective on how the industry may evolve over the coming decade and which business and investment models successful alternative investors and capital providers will employ to navigate the changing ecosystem.

Venture capital: Venture capital is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth.

Hedge fund: A hedge fund is an investment fund that pools capital from accredited investors or institutional investors and invests in a variety of assets, often with complex portfolioconstruction and risk management techniques.

Private equity buyout: In private equity, funds and investors seek out underperforming or undervalued companies that they can take private and turn around, before going public years later.

Buyout firms are involved in management buyouts (MBOs), in which the management of the company being purchased takes a stake.

Cryptocurrency: In 2008, Satoshi Nakamoto had created a new currency called Bitcoin. A decade later, that currency grew exponentially. First breaking the $1,000 mark then continuing to the $5,000 and $10,000 mark only to finally crash at around $20,000. So why did it crash? Many people seem to link some real-life event to the fall and rise of prices, at least when looking at the Crypto Markets. However, most of these “reasons” are false. When the market crash, news sites try and find a reason behind the crash for a more interesting story. Along with that, it is beneficial to those that control the Bitcoin supply to have people think that these fluctuations are caused by anti-market events in the world, not by Bitcoin itself. Bitcoin did not crash because of regulations or any other reason that the media tries to sell to you. Bitcoin crashed because it was set up in the crash. Four years after its creation, on November 19, 2013, Bitcoin crashed from $979 all the way down to $300 overnight and continued a slow downtrend for two years. On November 2015 it started its uptrend again. Another two years later on December 11, 2017, Bitcoin crashed again, almost the exact amount as it did four years ago, by 70% overnight.

Conclusion: The alternative investment is past year for long term investment and high growth profit for industry. It is that very frequently investment change as you can see in above highlights in respect of economic diversifications, the investors also belief now a day’s diversification investment to get higher return also with higher risk that’s in future investors focuses on private equity fund and hedge funds because they get higher return which is also moving forward market to grown with these marketable situations and growing rapidly.