This topic can be pretty extensive. In this article I am going to outline the basics.
There are three traditional asset classes to invest in: stocks, bonds and cash. The rest are alternative investments, alternative assets to invest in: from venture capital, private equity and real estate investment trusts to commodities, also including precious metals, collector items, art and more.
Oil.Vision is one of the alternative investment. With Oil.Vision you do not buy stocks, you do not burden yourself with debt obligations (which, simply put, bonds are) and you do not open a savings account to stack some cash. It is closer to equity crowdfunding, since on early stages you even get a chance to become a shareholder of our Oil Billion Fund and receive extra profit on top of your investment.
Specifics and planning
Depending on on what particular type you choose, alternative investments usually (e.g. real estate) have higher initial investment fees. Alternative investments are often long term, since they provide higher returns over prolonged periods along with tax benefits. Alternative investments are an inflation hedge, which is quite a benefit, provided you invested smartly. You can also invest in alternative assets through ETFs.
Alternative investments can be a good way to diversify your portfolio and may be extremely profitable in the long term. However, i would recommend you to be careful and study the subject first.
Ask yourself and answer these questions:
- How much money can I really invest without damaging my budget?
Do not gamble. If there’s an investment that requires more money than you can allow to spend, wait and save some to invest later. Alway invest extra money. Gambling with your personal finances I cannot recommend.
- What alternative investment option can I use with the money I have?
You have to understand, that real estate is hardly an option, when it comes to having only a thousand dollars. But buying a thousand dollar bottle of wine may prove to become a good investment, provided you made a thorough research. So, here comes the next question.
- How is your investment going to play out in the long run?
Do you know how to properly store wine for decades? Do you know how to identify a good one? Or if you’re investing in commodities, can you be sure it’s not excessively volatile? Learn to analyse and predict.