Alternative investments are not liquidated in nature, therefore categorized as long-term investments. For investors who are wanting to raise money, a certain level of patience is required for this investment in order to reap remarkable rewards. There are risks involved, which will be discussed in the items below, since it is not a traditional form of investment.
Alternative investments are not liquidated in nature, therefore categorized as long-term investments. For investors who are wanting to raise money, a certain level of patience is required for this investment in order to reap remarkable rewards. There are risks involved, which will be discussed in the items below, since it is not a traditional form of investment.
When you say alternative investments, they generally have lower capital gains taxes, and lasts for more than a year, which means it can accrue much larger gains. Investors and businesses will have to look to the bigger picture to stay focused on their goals and the money that can be raised in the long term.
Here are 5 Alternative Investments available for UK based entrepreneurs and Investors:
Hedge FundsThis is somehow similar to traditional investing and mutual funding, but riskier because of its high leverage. This is participated mostly by accredited investors and entrepreneurs with high net worth and a proven track record in investments. Hedge funds require a high price; ranging from £100,000 to millions.
Generally involves investing in residential and commercial buildings and land; this can be participated even by regular investors. This is a new trend where investors can start with smaller amounts of money for larger deals in order to have big returns on their investment.
Foreign Businesses
This is the alternative investment choice if you are an investor who sees a lot of potential in foreign markets instead of start up businesses in UK. You may acquire African or Asian farmlands and companies, or oil industries.
Commodities
Alternative investments also involves the classic trade of precious metals and almost any valuable items. This is very beneficial because these commodities are considered as hard assets. However, investors should also consider market trends in order to raise money at the right time.
Venture Capitalism
Another long-term investment, but this one focuses on putting money on new start up businesses. Venture capitalists are usually involved with private equity firms that invest during the early to mid growth stages of companies. Investors are able to fund new business opportunities to aid the growth and expansion of the new company. Investors are able to raise capital when they get a stake in the company.
The riskiness of this investment is due to the lack of experience and proven track record of the company. When the company fails in the market, the investor also loses its capital.
UK Business Angels Network
