According to multiple sources, the average millennial has just $8,000 in their savings account. However, considering that the term millennial encompasses an age range of 19 to 39, this figure can differ wildly. Millennials are technically anyone born between 1982 and 2002. This would make up roughly 81 million Americans.
Millennials are also known as being one of the most ambitious generations, constantly looking for ways to double their money through the likes of investing. But with an average savings account of $8000; investing for millennials could be a struggle, they’re not exactly going to start their own hedge funds with that.
There is a solution. Alternative investment is a growing market that allow smaller investors the chance to make money in a less traditional way. The global market for alternative investments is set to reach $23.21 trillion by 2026 and shows no sign of slowing.
So what are these alternative investments for millennials? And, what makes an alternative investment? Let’s take a look.
What Is An Alternative Investment?
According to the CFA institute, “Alternative investments are supplemental strategies to traditional long-only positions in stocks, bonds, and cash. Alternative investments include investments in five main categories: hedge funds, private equity, natural resources, real estate, and infrastructure.”
Which essentially means, they’re investments that aren’t buying a stock, bond or holding cash in a savings account. Investments such as buying and holding a whiskey barrel, collectible watches, NFTs and even investing in digital real estate or physical real estate are all forms of alternative investments.
But, what is it that makes alternative investments so popular? Why is it popular with millennials?
Investing For Millennials: Why Are Alternative Investments So Popular?
At its most basic, alternative investments are a way for investors to diversify their portfolio, which spreads their risk exposure across multiple, low correlation asset classes. Alternative investments began rising in popularity…