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Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

Published by Paul
Edited: 3 weeks ago
Published: July 1, 2024
06:56

Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider When it comes to investing, stocks are often the first thing that comes to mind. However, in today’s dynamic financial marketplace, there are numerous alternative investment opportunities that can offer diversification and potentially higher returns than traditional stocks. In

Title: Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

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Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

When it comes to investing, stocks are often the first thing that comes to mind. However, in today’s dynamic financial marketplace, there are numerous alternative investment opportunities that can offer diversification and potentially higher returns than traditional stocks. In this article, we’ll explore five innovative alternative investing apps that are worth considering.

Robo-Advisors: Betterment and Wealthfront

Robo-advisors

  • Betterment: This app uses algorithms to build, manage and optimize a personalized investment portfolio based on an investor’s goals and risk tolerance.
  • Wealthfront: Similar to Betterment, Wealthfront employs automated investment management, tax-loss harvesting, and other features aimed at maximizing returns for investors.

Both Betterment and Wealthfront are excellent alternatives to traditional stock trading platforms. They cater to a broader range of investors, offering low fees, tax-efficient investment strategies, and an overall simplified investing experience.

Real Estate Crowdfunding: Fundrise and RealtyMogul

Real estate crowdfunding platforms

  • Fundrise: This app allows investors to pool their money together with other investors to purchase commercial real estate properties. Investors receive returns through regular dividends and long-term capital gains.
  • RealtyMogul: RealtyMogul provides access to a wide range of real estate investment opportunities, including both commercial and residential properties.

Real estate crowdfunding platforms like Fundrise and RealtyMogul offer investors the opportunity to diversify their portfolios beyond traditional stocks and bonds. With relatively low minimum investments and passive income potential, these platforms can be an excellent alternative investment option.

Peer-to-Peer Lending: Prosper and LendingClub

Peer-to-peer lending platforms

  • Prosper: This platform allows investors to lend money to individuals or small businesses, earning interest on their investment as borrowers repay their loans.
  • LendingClub: Similar to Prosper, LendingClub connects investors with borrowers seeking loans. Investors can choose the specific loans they want to invest in based on factors such as interest rate and creditworthiness.

Peer-to-peer lending platforms like Prosper and LendingClub offer investors the chance to earn higher returns than traditional savings accounts or CDs. These platforms also allow for more control over the investment process compared to other alternative investments.

Art Investing: Masterwork

Masterwork

  • This app offers fractional ownership of blue-chip art pieces, allowing investors to access the art market with relatively low minimum investments.

Masterwork provides an opportunity for investors to diversify their portfolios by investing in art, which has historically shown strong long-term returns. The app aims to simplify the investment process and make the art market accessible to a broader audience.

5. Cryptocurrency: Coinbase

Cryptocurrency platforms

  • Coinbase: This platform allows investors to buy, sell, and store various cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.

Cryptocurrency platforms like Coinbase have gained significant attention in recent years due to their potential for high returns. While the volatility of cryptocurrencies makes them a riskier alternative investment, they can offer potentially significant rewards. However, it’s crucial to thoroughly research and understand the risks before investing in cryptocurrencies.

Conclusion

These five innovative alternative investing apps offer a wide range of investment opportunities beyond traditional stocks. From robo-advisors and real estate crowdfunding to peer-to-peer lending, art investing, and cryptocurrency platforms, there are numerous options for investors looking to diversify their portfolios. Make sure to do your own research and consider your financial situation and goals before investing in any alternative investment.

Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

Exploring Alternative Investments: A Response to the Volatility and Uncertainty of the Stock Market

Currently, the stock market is known for its volatility and unpredictability, which can pose significant risks for individual investors. While stocks have historically provided strong returns over the long term, they come with inherent risks that can lead to substantial losses in the short term. The appeal of alternative investment options has grown as investors seek ways to diversify beyond traditional stocks, bonds, and cash.

Understanding Alternative Investments

Alternative investments refer to a broad range of asset classes that do not fall into the traditional categories of stocks, bonds, or cash. These investments can include real estate, private equity, hedge funds, and various types of alternative strategies such as commodities or cryptocurrencies. The potential benefits of alternative investments include diversification away from traditional asset classes and the opportunity for higher returns with lower correlation to the stock market.

Diversification Away from Traditional Asset Classes

Investing in alternative assets can help reduce portfolio risk by providing exposure to different types of returns and risks that are not correlated with traditional stocks, bonds, or cash. For instance, real estate investments can provide a steady income stream through rental income and offer potential capital appreciation over the long term. On the other hand, investing in private equity or hedge funds can provide access to opportunities that are not available to individual investors through traditional markets.

Opportunities for Higher Returns with Lower Correlation

Additionally, alternative investments can offer higher potential returns than traditional asset classes. For example, hedge funds have historically provided higher returns than the S&P 500 index over the long term, although with greater risk. Commodities such as gold or oil can also act as a hedge against inflation and provide a potential source of returns during economic downturns.

Exploring Innovative Alternative Investing Apps

In the rapidly evolving world of alternative investments, innovative apps have emerged to provide easier access to these opportunities. In this article, we will explore five such apps that are worth considering for individual investors looking to diversify beyond traditional asset classes and potentially increase their returns.

Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

Background on Alternative Investments

Alternative investments, as the name suggests, are investment classes that deviate from traditional stocks, bonds, and cash. These unconventional assets aim to diversify investors’ portfolios by providing low correlation with the stock market and often offering higher returns.

Size and Growth Rate of Alternative Investment Market

According to recent statistics, the global alternative investment market has been experiencing robust growth. In 2019, the size of this market was estimated at around $14 trillion, with a growth rate projected to reach $17 trillion by 202This upward trend signifies the increasing interest and confidence of investors in alternative investment opportunities.

Types of Alternative Investments

Real Estate:

Real estate is one popular alternative investment, encompassing various property types like commercial, residential, and industrial. Its allure stems from the potential for regular income through rental payments and long-term capital appreciation. However, real estate investments require substantial upfront capital and management involvement.

Hedge Funds:

Hedge funds offer professionally managed pools of capital that employ various investment strategies, including short selling and leverage. They aim to generate higher returns than traditional stocks by exploiting inefficiencies in the market. However, high entry fees, complex strategies, and limited transparency can deter some investors.

Private Equity:

Private equity refers to investments in private companies or buyouts of public ones that are later taken private. This asset class provides the potential for substantial capital gains, as well as control over the investment’s strategic direction. However, it often requires a large minimum investment and a long-term holding period.

Commodities:

Commodities, including precious metals, energies, agricultural products, and industrial materials, are another alternative investment class. They serve as hedges against inflation and offer potential for capital appreciation due to supply and demand dynamics. However, commodity investments can be volatile and require specialized knowledge for successful execution.

Why Choose Alternative Investments?

Investors might consider alternative investments for several reasons, such as:
Seeking diversification: Alternative investments can help reduce overall portfolio risk by offering low correlation to traditional stocks and bonds.
Higher returns: Some alternative investments, such as hedge funds, private equity, and real estate, have historically provided higher returns than stocks or bonds.
Income generation: Real estate investments can generate regular income through rental payments, while commodities investments can provide yield from dividends or interest.

Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

I The Role of Technology in Alternative Investing: An Overview

Technology has revolutionized the financial industry, and alternative investments are no exception. Disruption in the traditional finance sector is a common theme these days, as technology-driven solutions continue to redefine the way investors access and manage their portfolios. Alternative investments have long been perceived as complex, illiquid, and exclusive. However, with the advent of digital platforms, this perception is changing rapidly.

Advantages of Digital Platforms for Accessing Alternative Investment Opportunities

One significant advantage of digital platforms is the ability to provide greater accessibility and transparency to alternative investments. Gone are the days of having to be a wealthy investor or an accredited institutional investor to gain entry into alternative investment markets. Today, individual investors can access alternative assets through digital marketplaces that offer a variety of options, from hedge funds and private equity to real estate and art.

Five Innovative Alternative Investing Apps Worth Considering

In this article, we will explore five innovative alternative investing apps that are revolutionizing the way investors access and manage alternative investments. These apps offer a range of investment options, competitive fees, user-friendly interfaces, and robust educational resources to help investors make informed decisions. So sit back, relax, and let’s dive into the world of technology-driven alternative investing platforms!

Yieldstreet

Yieldstreet is a leading digital investment platform that offers access to alternative asset classes, such as real estate, art, private equity, and litigation finance. The platform features a user-friendly interface, low minimum investment requirements, and provides comprehensive educational resources to help investors make informed decisions.

Masters Capital

Masters Capital is a digital investment platform that specializes in alternative investments for accredited investors. The platform offers access to a diversified portfolio of hedge funds, private equity, and real estate investment opportunities, among others. Masters Capital prides itself on its rigorous due diligence process and experienced investment team.

DiversyFund

DiversyFund is a real estate investing platform that enables users to invest in commercial properties through a REIT. The app offers low minimum investments, transparency, and ease of use. DiversyFund’s investment strategy focuses on value-add properties in growing markets, making it an attractive option for those interested in alternative real estate investments.

Arthena

Arthena is a digital investment platform that provides access to the art market, enabling investors to buy shares in works of art. The app offers low minimum investments and a curated selection of artwork from leading galleries and museums. Arthena’s investment approach is based on data analysis, market trends, and expert opinions to help investors make informed decisions.

5. Masterworks

Masterworks is a digital investment platform that offers investors the opportunity to buy shares in iconic artwork. The app’s investment strategy focuses on blue-chip art pieces with a proven track record of appreciation over time. Masterworks offers a transparent and easy-to-use platform, allowing investors to buy and sell shares in art like stocks on a public exchange.

Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

App #1: Acorns

Acorns is a popular micro-investing app that makes investing accessible and effortless for everyday consumers. Functionality and User Experience: The app’s primary feature is its “round-up” system, which allows users to automatically invest the difference when making purchases with linked credit or debit cards. For instance, if a user spends $3.25 on coffee, Acorns will round up the purchase to $4 and invest the difference of $0.75. This small investment can add up over time.

Types of Investments and Investment Strategy:

Acorns offers a diverse range of investment options, including stocks, bonds, ETFs, and exchange-traded funds. The app utilizes a “smart diversification” investment strategy that assesses users’ risk tolerance, age, and financial goals to create an optimized portfolio. By investing small amounts regularly, users can build a well-diversified portfolio over time.

Fees, Minimum Investments, and Account Types:

Acorns charges a small monthly fee of $1 for access to its core features. However, they also offer a free tier called “Acorns Lite,” which only includes the round-up feature and does not provide access to retirement accounts or portfolio personalization. Acorns has a minimum investment of $5 for both new and recurring investments, making it an affordable option for individuals looking to start investing with small amounts.

Unique Features and Benefits:

Acorns boasts several perks that set it apart from competitors. For instance, users can link multiple bank accounts to the app and manage all their investments in one place. Additionally, Acorns provides access to individual retirement accounts (IRAs) for tax-advantaged savings and various account types, including taxable investment accounts.

Partnerships, Promotional Offers, and Other Perks:

Acorns has formed partnerships with various companies to offer exclusive promotions. For example, users can receive a $5 sign-up bonus when they link their first bank account and make an initial deposit of at least $5. Furthermore, Acorns offers a feature called “Found Money,” where users can earn cashback rewards from partnered retailers and brands when making purchases using their linked cards. These incentives make Acorns an even more attractive option for those seeking alternative investment opportunities with added benefits.

Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

App #2: Robinhood – Revolutionizing Alternative Investments

Robinhood, a trailblazing fintech app, has disrupted the traditional investment landscape by offering commission-free trading on various assets, including alternative investments. Let’s dive into its functionality and user experience for this new breed of investments:

Functionality and User Experience: Zero-Fee Trading

Robinhood’s user experience is straightforward. Users can buy, sell, and manage their alternative investments without worrying about any commission fees. The app supports buying and selling of:

  • Cryptocurrencies
  • Fractional shares of stocks, ETFs, and ADRs

This accessibility makes investing in alternative assets more convenient and affordable for the average investor.

Types of Alternative Investments: Cryptocurrencies, Commodities, and More

Robinhood offers a range of alternative investments. Users can trade:

  • Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), and others.
  • Gold
  • Silver
  • Other commodities: like oil, wheat, and more.

These investments can help diversify one’s portfolio beyond traditional stocks and bonds.

Restrictions and Limitations

While Robinhood offers commission-free trading, it comes with some restrictions:

  • Users can only access cryptocurrencies in certain jurisdictions.
  • Trading for some cryptocurrencies may be halted due to market volatility or regulatory concerns.

It’s crucial to review Robinhood’s terms and conditions before diving into alternative investments.

Features and Benefits: Real-Time Market Data, Educational Resources, Community Engagement

Robinhood’s app offers several features to enhance the experience of alternative investors:

  • Real-time market data: Users can track prices and volume trends for their investments in real-time.
  • Educational resources
  • : Robinhood provides articles, tutorials, and community discussions to help users learn about alternative investments.

  • Community engagement
  • : Users can join forums, discuss strategies, and share ideas with like-minded investors.

    These features create a supportive environment that empowers users to make informed decisions and take advantage of opportunities in the alternative investment space.

    VI. App #3: Stash A:

    Stash is a user-friendly investment app that caters to alternative investors, allowing them to explore various investment themes and build customized portfolios. With a focus on accessibility and affordability, Stash offers a wide range of investment themes or portfolios, including “climate,” “tech,” and many more, enabling users to align their investments with their values and interests.

    Customizable Investment Options:

    Users can choose from a diverse selection of investment themes based on their unique goals and preferences. This feature empowers investors to create a portfolio that resonates with them, making the experience more engaging and meaningful.

    Fees, Minimum Investments, and Account Types:

    Stash’s pricing structure is transparent and competitive, with a monthly subscription fee starting at just $1 for the Basic plan. For those who require more advanced features or larger portfolios, the Stash+ plan offers additional benefits such as higher savings goals and customizable stock and ETF transactions for a monthly fee of $The minimum initial investment is only $5, making it an accessible option for those with modest starting balances. Additionally, Stash supports various account types, including traditional brokerage accounts and Individual Retirement Accounts (IRAs), allowing users to save for their future financial needs.

    Robust Features and Educational Resources:

    Stash’s intuitive app boasts several features tailored to alternative investors, such as:

    • Automated Investing: This feature simplifies the process of investing by automatically transferring funds from a user’s Stash account to their investment portfolio based on their chosen schedule and preferences.
    • Fractional Shares: Users can purchase stocks or ETFs in fractional shares, enabling them to build a diversified portfolio with smaller investments.
    • Educational Resources: Stash offers a wealth of educational content designed to help users expand their financial literacy and make informed investment decisions.

    Overall, Stash is an excellent choice for alternative investors seeking a user-friendly and accessible platform to explore various investment themes while enjoying features like automated investing, fractional shares, and comprehensive educational resources.
    Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

    V App #4: Fundrise

    Fundrise is a revolutionary digital platform redefining real estate investing for the modern era. This innovative app offers users the opportunity to invest in professionally managed real estate projects, including commercial properties and multifamily complexes, previously accessible only to institutional investors and the wealthy. Here’s a closer look at how Fundrise functions and the benefits it provides for alternative investors:

    Investing in Real Estate Projects

    Users can invest as little as $500 to start building their real estate portfolios. Fundrise streamlines the investment process by providing detailed information on each project, allowing users to make informed decisions based on their risk tolerance and investment goals. The app also offers a Starter Portfolio for those new to real estate investing, which provides a diversified mix of projects.

    Fees, Minimum Investments, and Account Types

    Fundrise charges an annual management fee of approximately 0.85% for its investment offerings and a 0.15% transaction fee on the purchase or sale of shares. Minimum investments vary between project types, with some requiring as little as $500 and others $10,000 or more. The app supports various account types, including individual retirement accounts (IRAs), making it an attractive option for investors looking to diversify their retirement portfolios.

    Features and Benefits

    By investing with Fundrise, users gain access to regular updates on property performance, allowing them to monitor their investments closely. The app also offers tax advantages through the sale of shares in taxable accounts and the potential for tax-deferred growth in IRAs. Additionally, investing in real estate through Fundrise provides diversification opportunities beyond traditional stocks and bonds, potentially reducing overall portfolio risk.

    Conclusion

    Fundrise’s user-friendly app and innovative approach make real estate investing accessible to a wider audience. With low minimum investments, diverse project offerings, and features that cater to various investor needs, Fundrise is an excellent choice for alternative investors seeking to expand their portfolios and gain exposure to real estate markets.

    VI App #5: Betterment

    Betterment, a leading digital investment manager, offers users an innovative approach to alternative investments, such as gold or other commodities. This section will delve into the app’s functionality, user experience, and key features specifically tailored for alternative investors.

    Functionality and User Experience

    By integrating Betterment‘s digital platform

    , users can effortlessly invest in precious metals and other commodities. The process is simple: sign up for an account, link a funding source, choose your portfolio allocation, and voila! You’re ready to invest in alternative assets. Real-time performance data is readily available to help users stay informed about their investments’ progress.

    Fees, Minimum Investments, and Account Types

    Betterment charges a management fee based on the total assets under management (AUM). For portfolios under $100,000, it’s 0.4% annually. However, for gold and silver investments, an additional 0.15% annual fee applies. The minimum investment to start is a mere $0, making it accessible to almost everyone. Betterment supports various account types, including IRAs, traditional taxable accounts, and Roth IRAs.

    Features and Benefits

    Tax-efficient trading: Betterment employs tax-loss harvesting strategies to optimize capital gains and minimize potential losses, benefiting alternative investors.

    Automated rebalancing: The app automatically rebalances your portfolio to maintain your desired asset allocation, ensuring you remain on track towards your investment goals.

    Educational resources: Betterment offers a wealth of educational content to help users expand their knowledge about alternative investments, market trends, and investment strategies. This feature empowers users to make informed decisions and stay up-to-date with the latest developments in the alternative investments world.

    Move Over, Stocks: 5 Innovative Alternative Investing Apps You Should Consider

    IX. Conclusion

    In the dynamic world of investing, traditional stocks and bonds may no longer be the only game in town. Alternative investments, including private equity, real estate, hedge funds, and commodities, offer unique benefits that can help investors diversify their portfolios and potentially earn higher returns with lower risk. With the advent of technology, these opportunities are no longer exclusive to institutional investors or high net worth individuals. In this article, we have explored five innovative alternative investing apps that are making these once inaccessible investment classes available to individual investors.

    Fundrise:

    As the first-ever real estate investing platform open to all, Fundrise offers investors access to commercial real estate projects across the United States. With a low minimum investment and automated portfolio management, Fundrise simplifies the process of investing in real estate for individuals.

    Robinhood:

    Revolutionizing the investing landscape, Robinhood offers commission-free trading in stocks, ETFs, options, and cryptocurrencies. By eliminating brokerage fees, Robinhood empowers users to build a diversified portfolio without incurring additional costs.

    Betterment:

    Betterment, a leading robo-advisor, also offers access to alternative investments such as gold and other precious metals. With no minimum investment and advanced tax-loss harvesting features, Betterment simplifies the process of adding alternatives to traditional portfolios.

    Yieldstreet:

    Yieldstreet offers access to alternative investment opportunities in sectors such as real estate, art, and litigation finance. With a low minimum investment of $1,000 and an intuitive platform, Yieldstreet makes it easier for individual investors to explore alternative investments outside of their typical stock and bond holdings.

    5. Masterworks:

    An innovative platform for fine art investing, Masterworks allows users to invest in fractional shares of multi-million dollar works of art. With a minimum investment of $25,000 and the potential for high returns over the long term, Masterworks offers an exciting alternative to traditional investments.

    Explore These Platforms:

    We encourage our readers to explore these platforms and consider how they can help diversify your investment portfolio. By investing in a range of assets beyond stocks and bonds, individual investors can potentially earn higher returns while reducing overall risk. Remember that all investments come with their own unique risks, and it is essential to do your due diligence before investing.

    Quick Read

    July 1, 2024