Focus on Alternative Investments that can help improve Portfolio Diversification.

Keeping financial backup sounds old school but this is still the most useful thing to this day. I have seen people put in their 100% money to stock, real estate, or even crypto. I believe the old saying, don't put all of your eggs in a single basket.

What I personally found is, many of us are unaware of how we can diversify our money. Even if we have small knowledge of that, it doesn't make us ready to take the risks. It happens mostly because we refuse to put that much time and effort to master those alternatives. Truth or not?

Believe me, it's just like crypto. Remember those days, when you first joined crypto, doesn't know much about it and now you can understand most of the things quite easily? The same goes for any other alternative investments.

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Some of the sectors where I usually invest -

• Non-tradable funds and bonds.

• Commodities like gold.

• Term deposits in banks.

• And obviously crypto.

I came to realize this is not enough as they have potentially low returns except crypto. So I need to move on to improve my portfolio diversification. Some of the few things are on my mind.

• Equity offering on private companies. This seems very lucrative these days. Because most of the private companies are mostly growing and investing in them can pay a good return.

• Real estate. To be honest, I don't have much knowledge about it, still learning. I have a plan to invest in this sector. These days they offer more returns than other stocks.

I believe there's no need to talk about portfolio diversification or simply putting our eggs in different baskets. For me, when one of my investment sectors goes downward, the other mostly goes upwards and I continue to get some return.

By providing exposure to a broad range of assets, alternative investments can help us achieve growth or access sources of returns that are not tied to traditional one or two sectors. This way we automatically ensure our stability and return.

It's true that alternative investments are more complex than other sectors. I think it's another reason for our school education. Anyway, you can always seek help from a professional if you are going to invest a good amount of money. I personally believe, the profit/return from these alternatives always works best for tax advantage and future investment.

What do you think?

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