If you’re poring over your investment portfolio and searching for exciting ways to diversity, you might need to engage your imagination and seek opportunities which are a little less mainstream.
The backbone of a successful strategy might be organisations which have withstood myriad market fluctuations over the years, and a dedication to time in the market, rather than timing the market.
But if you’re up for a flutter around the fringes, backing businesses which are new but display bags of potential can pay off — as can revisiting traditional sectors which you’ve not considered for a while.
Remember that your capital is at risk with any investments, but if you’re wondering which left field options might be lucrative, here are three alternatives for 2019.
1. Artisan alcohol
Twenty years ago, the stereotypical craft beer enthusiast was a bearded folk music fan in a chunky knitted jumper, while gin was the tipple of choice for melancholy grandparents at New Year.
But nowadays, chic gin distilleries are popping up across the country like pimples on a teenager’s face and craft beer is the hippest drink on the planet.
The bubble may burst at some point, but at least in the medium term, artisan alcohol seems like a sound investment.
Scottish beer brand BrewDog are at the cutting edge of the craft beer revival and their regular ‘equity for punks’ share offers attract tens of thousands of acolytes and raise millions. Keep an eye on their website for the next opportunity.
And if gin is your perfect poison, you’ll find opportunities to invest in companies like Cotswold Distilleries on the Crowdcube platform — interestingly, this firm has also branched out into the whisky market.
2. Ethical banking
Many high street banks in Britain are still recovering from the self-imposed reputational damage they suffered after the 2008 crash — and have been criticised since for failing to delineate between their personal banking functions and riskier endeavours like sub-prime mortgages.
But although they’re not nearly as high-profile, ethical banks have been around for a while and they only invest in projects that improve the planet and enhance people’s lives.
Some such investment strands include organic farming, green energy, social housing and cultural inclusion.
Sustainable bank Triodos is a prime example of this type of financial institution — if you’re interested, they offer sustainable equity funds or the opportunity to back the bank itself.
3. Construction aggregates
Construction aggregates are perhaps the most mainstream of our investment tips, but they’re still unusual enough to merit the ‘alternative’ tag.
Aggregates are specialist stone-based products used in everything from highway construction to landscaping and sports — for a deeper dive into product diversity, browse the product catalogue for a rock supplier like Marchington Stone.
According to watchdog MarketWatch, the global construction aggregate market is set for a bullish performance over the next few years — driven by demand from the construction industry, tourism industry growth and technological improvements in aggregates manufacture.
So subject to the usual caveats, investment in aggregates look reasonably rock solid.
That’s our list. Tell us about your alternative investment picks in the comments section.
Sources: brewdog.com / triodos.co.uk