GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
Some can be more volatile, offering faster returns, while others provide steady growth and returns over time.
The right choice depends on your individual goals and comfort with risk.
Here are five unconventional assets that couldoutperform traditional real estate.
Cryptocurrencies
Shirshikov said that while cryptocurrencies can be highly volatile, returns can exceed 100%.
Bitcoin, for example, is up over 100% for the year.
However, Shirshikov acknowledged that these investments can also experience significant losses.
Drawbacks include potential dramatic price fluctuations within short time frames and the existing uncertainty in legal frameworks governing cryptocurrencies.
He said a pro of these investments is that they are physical items that can appreciate over time.
Plus, they offer portfolio diversification due to having a low correlation with traditional markets.
However, one of the disadvantages of these types of assets is their illiquidity.
Selling art can take time and may incur high transaction costs, he said.
Not only that, but expertise is required, according to Shirshikov.
Success often depends on knowledge of the art market, he explained.
Advantages include less volatility than stock and real estate markets.
Additionally, farmland often retains value during inflationary periods.
Music Royalties
Its possible to invest in music royalties without having any connections to the music industry.
Platforms like Royalty Exchange and SongVest allow investors to invest in assets ranging from music catalogs to trademark royalties.
Shirshikov said that yields can vary but often range from 8% to 12% annually.
Music royalties are a noncorrelated asset thats independent ofstock market movements, he explained.
But the income depends on the continued popularity of the music and requires understanding of intellectual property rights.
More From GOBankingRates
Share This Article:
