Are you tired of the same old boring investment ideas? Do you want the thrill that comes with trying out something new? In this era of investor education and maximizing if returns, it is paramount that one understands all the options that are out there for someone. This will not only boost your confidence; it also gives one bragging rights in “insider knowledge”. No one will ask you what bonds or stocks are. Everyone knows that all too well or at least has an idea. The key is standing out and alternative investments as an asset class provides exactly that.
So, what are alternative investments? These are generally investments that do not fall in the three traditional types i.e. stocks, bonds or cash items. They are highly preferred by high net worth investors (most of whom hire professionals to do the same for them) and institutional investors who have fund management departments and have to know all facets of investing.
Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts. For a market that is still young and in the throes of becoming a world class investment avenue, these are some of the avenues that are picking up in the country. Kenya at the moment has already established real estate as a key investment sector and this is more so with the introduction of REITS. This growth and branching into new avenues of investment is proving that Kenya has high potential for growth with more alternative investment options being in the pipeline for roll-over. With Kenya approaching Vision 2030, this is the place to put your money. Despite being complex in nature, knowing the basics is a good point to start. They are favorable because the returns are high and some of them offer good liquidity. And the notion that they are only for people with a lot of money is a baseless idea. Yes, you need money, but why not start small, with a couple of friends and moving forward. There is no ripe age for investing. Investing only requires heart and getting out of the comfort zone (investments are not waters for the cowards or as we commonly like to say…” risk averse”). And just because alternative investments are not that diverse in Kenya, we live in the era of internet and YouTube and global villages…the learning curve is at your fingertips. Just to be prepared always. That interest in the whole notion of putting your money or your ideas in something and betting on them for the future. That is the whole core of alternative investments. Who knows…it might be your cup of tea and in a few short months or years you will be the next Warren Buffet. Your dreams are valid! Live a little and put that spare money into options, swaps, futures, REITs…the point is to start