3 Alternative Investments To Diversify Your Portfolio
Risk is an inherent part of investing, although there are ways to minimize it. Diversifying your portfolio is one of the more notable; by having your investments spread across several areas, you’re protected if one sours.
You’ll have fewer eggs in one basket, so you’re risking less with each particular investment. That doesn’t mean diversifying your portfolio is easy, however. You’ll need to pick the right options, with a few alternative investments being notable.
Diversify Your Portfolio With Alternative Investments: 3 Top Options
1. Direct Lending
Direct lending is a type of private debt, with lenders typically being non-bank entities providing short-term loans to companies. As these happen outside of the public market, there are few correlations to traditional investments, and it can generate a stable return on investment.