Alternative investments are anything outside mainstream shares, bonds and cash. Investors use them to diversify and to access returns that behave differently from the stock market.
Common alternatives
- Property: direct, fractional, REITs and funds
- Infrastructure: usually through listed trusts or funds
- Private equity and venture capital: including EIS and VCT schemes
- Private credit and property lending
- Commodities and collectables
Where property fits
Property is the most familiar alternative. Commercial property in particular offers business tenants and contracted lease income. Fractional ownership opens up buildings that were previously limited to institutions.
What alternatives have in common
- Often less liquid than shares
- Higher minimums or longer holding periods
- More complex to value and compare
- Many are classed as high risk under UK rules
Keep alternatives to a sensible share of your portfolio and get advice if you are unsure. See fractional property investment: the complete guide.
This guide is general information, not financial, tax or legal advice. If you are unsure whether an investment is right for you, speak to a regulated financial adviser.