When we think of investing, it’s often in stocks, shares, bonds or property. In more recent times it’s been cryptocurrency, blurring that line between traditional and alternative investments in a new age.
However, times have been changing over the last few decades and many an investment portfolio have seen their investment strategies upgraded and a wealth of new additions welcomed, from digital assets to investing in art.
There are many investment types out there, and firstly it’s important to ensure you have knowledge in the areas, or at least your financial advisor or investment partner does. If that’s the case, you can adopt such strategies to generate high returns. But what are the more interesting and high return alternative assets you should look to become an investor in?
Ella Houghton, an expert in digital assets and the rise of gaming, as well as an author at Slotsjudge, delves into the types of alternative investments worth exploring in 2025…
Key factors in the popularity of alternative investments
There are many reasons people are shunning traditional investment, moving away from hedge funds or stocks and bonds and concentrating on the likes of wine, art or other collectibles.
Low interest rates has been one reason as to why investors are searching for yield outside traditional assets, while younger investors, who are more open to embracing the digital and outside of the box are finding that investments can come as a result of financial opportunity combined with lifestyle and cultural identity.
Investing in art
Art is one of the oldest alternative assets that can really reap higher returns. Traditionally, it has been dominated by the ultra-wealthy, but technology has opened up investment opportunities to a wider range of people.
There’s the option for investors to diversify their portfolios in a wealth of ways through art. Where once a Picasso or Warhol would have been the sensible move, and of course it still is, appreciating steadily, there’s also online opportunities too.
The NFT boom saw many invest in recent years, while there are many online platforms that can also help people invest in art too, through fractional ownership.
Benefits of investing in art:
- Art is tangible
- Appreciation potential
- A store of value
- Legacy planning
Risks of investing in art:
- Tax obligations
- Potential for destruction, counterfeits etc.
- Market volatility based on artist popularity
Investing in wine
Fine wine is another real asset that is one of the more common types of alternative investments. It’s popular among high net-worth individuals especially and there’s a global demand for it.
It’s a solid store of value, particularly the more prestigious wines from the likes of Bordeaux, Burgundy and Italy’s ‘Super Tuscans’.
There is a lot to consider, but Every Investor expert Katherine Read says: “Fine wine is a unique investment that offers stable returns, inflation protection, and diversification due to its low correlation with traditional markets.”
Benefits of investing in wine:
- Effective hedge against inflation and recession
- Averages return of 5-6% per year
- It’s a tangible asset
Risk of investing in wine:
- Fraud and counterfeit bottles
- It’s a perishable good and can be easily damaged
- Risk of overpaying if not careful
Collectibles
Collectibles is one of the broader asset types and examples of alternative investments within it include everything from sports memorabilia to Pokemon cards, Marvel comics, coins and sneakers.
Digital marketplaces have blasted open the doors of collectibles investing and the long and short of it is that they can be incredibly valuable, but they involve risk too. In abundance. They are driven by scarcity, community and cultural relevance and can fluctuate heavily, becoming much less valuable if you miss the trend.
Benefits of investing in collectibles:
- Ability to invest in your passions
- Diversify holdings
- Can appreciate dramatically in certain circumstances
Risks of investing in collectibles:
- Lack of liquidity
- Counterfeiting
- Potential to deteriorate or be damaged
- Trends can leave and never return
Investing in gaming
One of the more interesting new areas of investment with potential for higher returns is the gaming arena, whether that be across video gaming, mobile gaming or online casino. The industry is welcoming tonnes of private investment and they are growing exponentially.
Take the online casino market. There are so many huge trends right now, from virtual reality poker to minimum deposit casinos, making casino play accessible to the masses, no matter what their budget. It is a crowded market, though, and is a case of survival of the fittest in many cases, so making the right investment decisions is key.
There are high risks across all parts of the sector, but with that comes high reward.
Benefits of investing in gaming:
- Hugely growing market
- Lots of areas for alternative investing
- Expanding into new markets globally
Risks of investing in gaming:
- Various regulations to consider
- High competition
- Changing trends
In Conclusion: Creating a diversified portfolio with alternative investments
There are lots of opportunities out there that welcome new investment, but the principles of alternative investments can also be rooted in what makes a good investment in the traditional market too.
JP Morgan produced a fantastic guide to help people enter the world of alternative investments, stating: “Prioritizing due diligence and manager selection can be key to building an allocation to alternatives that enhances your portfolio’s diversification and outperformance potential.”
What’s more, know your subject inside out. Still, invest in what you know, and do that and you can create investment strategies to generate high returns on the things you love in a secondary market that’s only going to get bigger.