Money is powerful, but it’s not the whole story. Too much focus on returns alone can drain joy from life. That’s why more investors are looking at alternative investments for diversification. These are options that protect wealth while leaving space for health, family, and purpose.
If you’re ready to dive in, let’s explore how your financial priorities should grow as life unfolds, and how non-traditional investments fit into that journey.
10 Alternative Investments Worth Considering
Not all wealth comes from stocks and bonds. Here are ten ways to diversify with assets that balance risk and opportunity.
1. Real Estate Investing
Think of real estate as the anchor of alternative assets. With rental income, appreciation, and options like REITs, real estate investing provides both stability and growth. It also serves as an inflation hedge investment, helping protect your purchasing power when prices rise.
Takeaway: Real estate builds wealth you can live in, pass on, or refinance.
Check out our guide on Real Estate Investing in a High-Interest Rate World for a more in-depth look.
2. Private Equity Funds
Private equity funds invest in companies before they hit the stock market. They’re high risk high return assets, but they also give access to innovation and growth that public markets miss.
Takeaway: Even a small allocation adds powerful growth potential to a portfolio.
3. Hedge Funds
Hedge funds use strategies that zig when the market zags. They qualify as low correlation assets, which means they can stabilize returns when public markets stumble.
Takeaway: Hedge funds are less about beating the market and more about balancing it.
4. Commodities Investing
Gold, oil, and agricultural products may not be exciting, but they are proven protectors. Commodities investing acts as a ballast, providing resilience when markets feel stormy.
Takeaway: Commodities hedge against inflation and uncertainty—two things every investor faces eventually.
5. Art and Collectibles
Fine art, rare wine, and even NFTs are non-traditional investments that bring personality into your portfolio. They can grow in value, but the real power lies in passion.
Takeaway: Buy what you love, and value growth becomes a bonus.
6. Cryptocurrency Investing
Cryptocurrency investing represents both opportunity and volatility. For those willing to ride the ups and downs, it offers exposure to the digital economy, shaping the future of finance.
Takeaway: Keep allocations small and intentional—crypto is spice, not the main dish.
To avoid investment pitfalls, see The 5 Most Overhyped Investment Fads of the Last Decade.
7. Infrastructure Investments
From toll roads to renewable energy, infrastructure builds steady cash flows. It offers returns tied to essential services, not just market cycles.
Takeaway: Infrastructure is where stability meets progress.
8. Peer-to-Peer Lending
Peer-to-peer lending lets you step into the role of banker. You earn interest while supporting individuals or businesses. The key is spreading risk across many loans.
Takeaway: Lending directly can create both income and impact.
9. Venture Capital
Backing startups is a form of investing beyond stocks. It comes with risk, but it can also place you at the ground floor of the next big idea.
Takeaway: Venture capital is for bold money, not rent money.
10. Sustainable and Impact Investments
Sustainable investing aligns capital with causes. From ESG funds to clean energy, these strategies show that growth and purpose can work hand in hand. According to Morningstar, global investors continue to pour billions into ESG products.
Takeaway: Aligning money with values strengthens both portfolio and purpose.
Bringing It Together
The best portfolios aren’t built on returns alone. They are designed for resilience, freedom, and balance. By weaving in alternative investments for diversification, you can protect wealth, unlock opportunity, and stay true to what matters most.
But remember, true wealth is measured not just in assets but in peace of mind. For timeless lessons, explore How to Build Wealth Without Losing Your Soul.
