Alternative investments are, generally, more complex in nature than traditional investments. This is why they’re predominantly more suitable for experienced investors. However, the growth of alternative investments have seen some - including peer-to-peer loans - catch the eye of everyday (restricted) investors in recent times.
But, are alternative investments a good option?
Alternative investments have many benefits. Firstly, they don’t correlate with the stock market, meaning they can add a valuable element of diversification to an investment portfolio, helping to reduce volatility.
There are also a number of tax benefits available with alternative investments - such as EIS and SEIS - that are not accessible with traditional investments. In addition, alternative investments including peer-to-peer loans and property can be accessed through an IFISA, which makes all returns tax-free.