We all have at some point of time in our investing life invested in one or more than one of the following products:
All investments can actually be categorized to their simplest form in the following:
- Equity ( Shares)
- Debt ( Bonds, FD, NSC, PPF etc)
- Precious Metals ( Jewelry, Gold coins and bars, Gold ETFs)
- Real Estate ( Land, Flats )
But few of us have dabbled in
- Commodities ( Tin, Soya bean, wheat, coal, copper….and every thing else under the sun created by god)
- Currency markets ( $, yen, pounds, Euros, INR)
- Alternate assets.
Let us talk a little bit about what I am calling here Alternate assets:
Typically alternate assets is anything that can not be classified as one of the first 6 things on the list.
Some common examples will be:
- Antique coins and other antique objects
- Postage stamps
- Wine bottles
- Old posters, cards memorabilia etc, typically related to a theme e.g. movies, sports etc.
A lot of people have started dabbling in these assets, the logic one gets to hear is that these assets have a negative correlation with Equity and other markets so they provide a good hedge in volatile markets.
So should we go ahead and invest in one or more of these assets?
I am not sure. But given a choice I would like to stay away from most of the alternate assets.
If you are wondering why I can give many reasons and I plan to write about the same in the next blog I plan to write.
Thanks for reading keep watching this space.