With the stock market becoming increasingly volatile, many investors are looking into alternative investments to diversify their portfolios. However, most alternative assets have high minimums and are restricted to accredited investors. This leaves non-accredited investors with limited options. In this article, we will explore some of the alternative investment opportunities available to non-accredited investors.
Real estate crowdfunding provides exposure to real estate
Real estate crowdfunding platforms like Fundrise allow investors to pool their money and invest in commercial or residential properties. Investors can invest as little as $500 to gain exposure to the real estate market. However, investors have limited control and liquidity compared to direct real estate ownership.
Peer-to-peer lending offers fixed income opportunities
P2P lending platforms like Lending Club and Prosper allow investors to lend money to borrowers and earn interest income. Minimums are as low as $25 per loan. By lending to multiple borrowers, investors can build a diversified portfolio of loans.
Managed futures funds provide access to commodities trading
Managed futures mutual funds and ETFs allow small investors indirect access to futures markets normally dominated by large institutions. Top funds like Altegris Managed Futures Strategy Fund have low minimums but provide strategic exposure to commodities.
Equity crowdfunding invests in private startup companies
Equity crowdfunding platforms provide a way for non-accredited investors to buy shares in private startup companies. Minimums are generally a few hundred dollars. Ownership stakes are risky but may result in high returns if successful.
While not without risks, these alternative platforms open up opportunities previously closed off to non-accredited investors. With careful selection, alternatives can enhance portfolio diversification.