You’re not alone. Most people think about investing in the traditional sense. But did you know you can also invest iin assets from designer handbags to sustainability projects?
Want to know more? Keep reading to learn about the different types of alternative assets you can invest in.
But first, what are alternative assets?
Put simply, alternative assets are basically any assets that are not stocks, bonds or cash that generate a return.
Investing in alternative assets can range from more well-known opportunities like investing in real estate or startups to investing in collectables such as wine, vintage watches, and more.
While most of these opportunities were previously only accessible to the super-wealthy, new technology has made it easier for everyday investors to get started. At Ctrl Alt, we’ve developed a regulatory-compliant platform that empowers you to invest in fractions of alternatives assets from £10.
Here's 3 types of alternative assets to know about:
1. Sustainability projects
People are increasingly concerned about the environment and want to invest their money in projects and companies that are helping to tackle the climate crisis.
How does it work?
Let’s take the example of investing in a solar farm. When a company builds a solar farm, they need financing to do so. It may not be possible for this company to borrow enough money (or have enough cash) to do this on their own. So, they might look for other companies or wealthy individuals to partner with them and purchase a piece of the project/farm.
In this scenario, typically, only very wealthy people could access this investment. But at Ctrl Alt, we enable our eligible users to invest small amounts so that you’re able to own digital shares in exciting projects that benefit both people and planet.
For example, for a project where total investment might be £500K to help a company realise its aim of creating a green energy project. In such a scenario Ctrl Alt users would be able to invest in a fraction of the investment asset. When the electricity is sold to the consumer, users can then receive a share of the profits, equal to their ownership
Not many people know this, but you can invest in luxury items, like watches, designer handbags, vintage cars, and more.
The value of these items can increase over time, making them attractive to some investors. The limited supply paired with growing demand for luxury watches has resulted in increasing prices and more trading activity in the secondary market. While the primary market is expected to grow 1% each year, the growth rate in the pre-owned watch segment is 8-10% per annum.
Another particularly lucrative investment is the Hermes Birkin bag. According to Time Magazine, the Birkin bag has outpaced both the stock market and the price of gold in the past 35 years. The average annual return on the bag was 14.2% compared to the S&P average of 8.7% and gold’s 1.5%.
While the capital to purchase these luxury items is not as significant as something like real estate, it is still expensive and consequently inaccessible to many. Most people can only dream of owning a vintage Rolex.
But luckily, Ctrl Alt makes it possible. We enable our eligible users to invest with as little as they want to, they can own a part of a collectible.
Property is one of the most common types of alternative asset investments. It involves buying real estate and generating income from the rent or from selling the property for a profit.
However, you need a lot of money and time to invest in a property. Consequently, this type of investment was previously only accessible to wealthy people.
This is where we come in. Having already fractionalised the first house in the UK, Ctrl Alt’s platform is providing a new route to property investment as our very own CEO, Matt Ong explains:
‘’In an increasingly challenging landscape for people to invest in property, we’re really excited to be utilising our technology and framework to provide an exciting way to access property.
In a country where home ownership is emotive to many, we’re providing another route for people to delve into the property market.
Interested in exploring the world of alternatives? Download our app here to be one of the first to invest with Ctrl Alt.
Your capital is at risk. Alt Ltd does not provide investment advice. Individual investors should make their own decisions or seek professional independent advice if they are unsure as to the suitability/appropriateness of any investment for their individual circumstances or needs, including potential tax treatment. The value of investments can go up as well as down and you may receive less than your original investment or lose the value of your entire initial investment. Past performance is not a reliable indicator of future results. Currency rate fluctuations can adversely impact the overall returns on your original investment. Learn more by reading our full Risk Disclosure and our FAQs.