5 Unique Investing Opportunities Gaining Popularity

Simplicity is in, especially when it comes to investing. People want less complicated investing structures—and lots of ways to grow their wealth. And this includes the younger generations.

For the first time in history, investing is booming across all age groups. Case in point: According to Barron’s, 54% of Generation Z have at least one type of investment. As a result, adults everywhere are getting into the investment world. Yet they aren’t all sold on traditional investments or investment opportunities.

Instead, today’s investors want the chance to fill their portfolios with unique investments. They’re particularly excited by investments and investing platforms that weren’t available just a few years ago.

Below are some of the most popular investments gaining traction at the moment. Like all investments, they come with risks. However, many promise the attractive potential of short-term and long-term rewards.

1. Commercial Real Estate

Not long ago, most individuals could never dream of investing directly in commercial real estate (CRE). They might be able to invest in real estate investment trusts but not in actual commercial properties. Now, they can.

Platforms such as RedSwan are leveraging technology and blockchain to divide CRE investment opportunities into smaller tokens. Each investor in one larger piece of CRE, therefore, enjoys fractional ownership. The tokens exist on a blockchain ledger, making them immutable and secure, and at any time an investor may sell their tokens.

Being able to bring CRE investing to more people is a true game-changer. Though real estate can be volatile, it’s known as a lucrative investment. Being able to engage in fractional ownership provides investors with an avenue to enjoy CRE’s advantages.

2. Fine Art

Most people don’t assume that they could ever own a piece of museum-quality art. Yet fine art is making its way into more “average Jane/Joe” investment portfolios. One of the pioneering companies in this investment area is Masterworks.

The Masterworks investing setup isn’t far from RedSwan’s. Masterworks also sells fractional ownership. The only difference is that the fractional ownership is of a piece of artwork, such as a painting or non-fungible token (NFT). Fractional owners must wait several years before possibly seeing returns. With that being said, investing in the right art can pay off handsomely.

The biggest caveat about investing in art is that it’s somewhat of a risk. What’s “art” today isn’t necessarily deemed as “art” tomorrow. Still, for investors seeking something unusual and creative, being part-owner of fine art might be a great fit.

3. Peer-to-Peer Lending

Lending strangers money isn’t always the most reliable way to achieve financial freedom. Most people who borrow from their peers can’t get loans from traditional sources, such as banks. However, the larger risks of peer-to-peer lending have been mitigated thanks to sites like LendingClub and Prosper.

All peer-to-peer lending providers work in about the same way. Investors set up an account. The account gives them the ability to see information regarding loan applicants. Typically, the applicants are graded by their risk profile based on a number of factors, like credit history. The higher the applicant risk, the greater the interest on the applicant’s loan.

Once investors decide to invest in an applicant, they add their investment dollars to a pool of money. Essentially, all applicant loans are crowdfunded. This helps lower the effect of losses incurred by defaulted loans. With the right mix of peer-to-peer loans, an investor can earn consistent returns.

4. Startup Investing

Many entrepreneurs have a dream of opening a business. The problem is that they don’t have the money to get their dream off the ground. Startup investing platforms such as SeedInvest connect entrepreneurs and investors.

If nothing else, SeedInvest and similar sites provide a fascinating look into what could be tomorrow’s innovations. SeedInvest publicizes company after company seeking raises. All investors have to do is jump into the mix and become equity crowdfunding angels.

To date, hundreds of successful startups have connected with investors on these types of platforms. They’re worth a look for any investor who wants to fund disruptive organizations ready to remake their industries’ landscape.

5. Cryptocurrency

No article about up-and-coming investments would be complete without including cryptocurrency. Bitcoin, Ethereum, and other cryptocurrencies have earned a place in many investors’ portfolios.

MotleyFool reporting notes that 60% of investors between ages 18 and 40 have invested in crypto. In fact, younger investors seem to be changing the perception of crypto as a must-have investment. Over the years, more Generation X and Baby Boomer investors have decided to dabble in crypto. Many experts surmise this is because older investors are learning from their children about crypto’s potential.

Digital currencies aren’t without their ups and downs, of course. Unlike more tangible assets like real estate, crypto can jump from high highs to low lows rapidly. Nevertheless, many crypto enthusiasts believe it will be the wave of the future. Certainly, if the metaverse and Web 3.0 come to fruition, crypto will play a major role in the Internet.

Core investments like stocks, bonds, commodities, and precious metals haven’t gone anywhere. They’re still popping up in portfolios around the world. But other investments are edging in, making investing more interesting and exciting than ever.