Beyond Stocks and Bonds: Exploring alternative investments for portfolio growth

financialexpress.com:

By Tejas Patil

The traditional approach of solely relying on savings to prepare for the future has become obsolete. In the current economic climate, diversified investments have become indispensable to secure one’s financial future. The average inflation rate of 6.01% in India over the past decade underlines the importance of investing in a range of assets to mitigate financial risks and ensure long-term stability.

The field of investment opportunities is constantly evolving, and while traditional options like bank deposits, stocks, bonds, and mutual funds have historically been favoured, their potential for returns may now be outweighed by other opportunities. As such, investors are increasingly exploring alternative investment avenues such as venture capital, private equity, real estate, and commodities. These alternative investments offer unique benefits and may provide a valuable addition to a diversified portfolio. Investors need to consider these options to ensure they are making informed decisions regarding their investments.

Alternative investments represent a diverse range of investment opportunities that extend beyond traditional avenues, such as stocks and bonds. A well-diversified portfolio includes a mix of these conventional investments and alternative investments to potentially reduce volatility and increase returns.

One of the key advantages of alternative investments is their ability to offer diversification and potentially higher returns with a positive social impact. The growth of the alternative investments market is being driven by the expanding pool of domestic capital, which has spilt over into India’s tier II and tier III towns. Therefore, alternative investments have considerable potential for