How To Build An Alternative Portfolio for 2019

If you’re a little like us, always on the hunt for new and novel ways to make a bit of extra cash you’ll be wanting to find ways to make that cash grow. Maybe you’ll already have a little portfolio on the go but there’s always room to diversify!

For 2019 we’re looking further afield than stocks, bonds and ISAs, into some rather more fun ways to save and capitalise. There are so many interesting new ways to make your money work for you that are far more fun and more lucrative than having a savings account!

Here are our alternative portfolio picks for 2019

  1. Crowdfunding

Crowdfunding isn’t by any means new but it’s still a healthy additional option to any alternative portfolio. Merging money making with business backing it’s a win-win as you help entrepreneurs to realise their dreams and bring to market items you believe in and want to buy. UK platforms such as CrowdCube and Angels Den have raised more than £72 million from investors over the course of this year and this is no doubt set to increase into 2019.

If you’re a little fickle with your tastes crowdfunding platforms offer thousands of opportunities to get involved with different, exciting companies plus investment amounts start at the low end making this a perfect option for anyone with just a few spare pounds and pennies.

  1. Crypto

The bubble may have burst for this year but that only means it’s a great time to buy for first time investors! With a shift towards regulation, institutional money coming it’s way and many scam coins weeded out, it’s a good bet to buy in now and watch some growth come through in 2019-2020. Do your research on the best options though and make sure those you choose are solid. A good plan is to pick coins that have both added value as well as real-world partnerships, put simply, ones that have deals on the table with reputable brands you recognise and ‘do’ something interesting.

  1. ILOs

A new form of crowdfunding, the ILO which stands for Initial License Offering is allowing individuals to buy into businesses and receive royalty payouts based on that companies revenue. Licenses give the holder a quarterly payout for up to three years at which time the license is either extended or bought back so it’s near on risk-free! Similar to crowdfunding there are hundreds of businesses to choose from, you’ll find them on on the ILOExchange.

  1. Alternative property investments

Property may seem like a steep ask for a small time portfolio grower but there are plenty of new options hitting the scene that don’t quite involve the capital needed for a whole house.

Alternative property markets such as co-working spaces, student housing and care home units are options for those with some bucks to spend but there are also property share options on the table.

It’s possible to buy a share of a property with other investors or use a pension pot to purchase a buy-as-you-let property. Mortgages have become a little harder to get in recent years for buy-to-lets but there is still money to be made.

  1. Fine wine

So long as you have the willpower to keep it and not drink it,  wine is a great item to invest in. It’s value, given you have the right bottle has risen steadily since 2013 and increased by over 20% in 2017 alone! You just need to know what to buy. The Christmas period is a perfect time to have a read up of what’s a good bet and get to know your grapes. Planning to add wine into a portfolio also gives you the perfect, legitimate excuse to book in some wine tasting weekends. There are also plenty of wine tasting courses that will teach you how to identify a quality plonk when you neck it and give you the opportunity to network with other investors picking up tips as you go.

  1. Peer-to-peer lending

Sharing is caring right?! Peer-to-peer lending let’s you help out your peers which we think is a lovely thing. FCA regulated sites like Zopa, Prosper and Lending Works allow you to loan your own money to other people through their online platforms, without the need of a bank or underhand payday lender. These sites organise all the boring but very important stuff for you like credit and ID checks. They also set interest rates, collect payments and pay your returns. An advantage of peer-to-peer lending is that you can set higher interest rates than those offered by ISAs and savings accounts. You can also decide who you loan to and spread the risk by lending to many, investing as little as £10 a time. It’s also easy to withdraw from loan agreements if you need to free up dollar.

  1. Music

Launching in 2019, ILOTunes will offer ILOs specifically in music and artists. You can invest in your favourite artist, track or album and get returns from royalties as well as a constant stream of other opportunities to make money by helping them publicise their work. Helping artists like this is a great way to be more involved as a fan and as an ILO holder you will receive special content throughout the year as well as discounts on merch and tickets saving you money as well as allowing you to make it!

  1. Invest in You

Cheesy but true. You are your best portfolio asset. There are so many ways to do this. Education, courses, reading, finding a mentor. It’s all about self-improvement and realising what an asset you are in yourself. Book in on that course that will enable you to up-skill and go for a higher tier role, educate yourself on the necessary subject to help you become an expert in your field, read your landscape and increase lateral thinking abilities for pivoting start-ups.

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