Alternative Investments

Jim777

I have been searching of late for investments, which means that my social media is being bombarded with all sorts of strange investments. Property, gold, P2P Lending, litigation finance etc.

Can anyone advise me of there is any sort of alternative investment that is even worth consideration? If so, are there legitimate sites that people can point me to?

I would imagine that it is quite possible to earn 10% investing in property, but with whom? I'm sure that some of the links that I am seeing are just outright scams. 

ZeroSum

I dabble with a bit of P2P
Loanpad, Kuflink & unbolted being platforms I've got money in. All legit, Loanpad is the safest & has the lowest rate. Unbolted highest rates, which is has more risk.

wmb194

Jim777 said:

I have been searching of late for investments, which means that my social media is being bombarded with all sorts of strange investments. Property, gold, P2P Lending, litigation finance etc.

Can anyone advise me of there is any sort of alternative investment that is even worth consideration? If so, are there legitimate sites that people can point me to?

I would imagine that it is quite possible to earn 10% investing in property, but with whom? I'm sure that some of the links that I am seeing are just outright scams. 

You could have a look at investment trusts listed on the London Stock Exchange. There are companies investing in property (REITs), private equity, infrastructure and the like. They'll be far more legitimate and mainstream than the things you're seeing on social media.

https://www.theaic.co.uk/investment-company-screener

jimjames

Jim777 said:

I would imagine that it is quite possible to earn 10% investing in property, but with whom? I'm sure that some of the links that I am seeing are just outright scams. 

I would assume that most of the links you are seeing are outright scams. Problem is you'll only know that some years down the line when you try to get money out. Have you already maxed your S&S ISAs and pensions?

Eyeful

Your post suggest you are new to investing.

I suggest you do not get your investment ideas from social media. What you see there is just bait to hook the uninformed.
There are a lot of investment scams on those sites that make it look easy, to make large profits (like 10%) for little or no risk.

1.Why are you looking for alternative investments?
2. What is wrong with "normal" regulated investments? 
3. How much do you know about investing?
4. What is your risk tolerance?
5. What make you think think that alternative investments will do better that "normal" regulated investments.
6. How large is your emergency fund?
7. Do you have a pension or cash ISA.

(a) Savings Accounts (low risk) Only come from:
 NS&I (UK government). Has 100% protection.
Banks & Building Societies that are on the FSCS list are protected up to £85k.
 
(b) Anything else is Investing. This means you are putting your money at risk.
You may get less out than you put in. You might even lose it all.

I suggest that you stick to savings accounts.
If you do want to invest then consider a low cost Global Multi- Asset Fund, with a share bond split, or risk level you are comfortable with.

dunstonh

of strange investments. Property, gold, P2P Lending, litigation finance etc.

Litigation finance relies on mugs at both ends.  i.e. consumers that sign up the ambulance chasers and investors putting their money in.

wmb194

dunstonh said:

of strange investments. Property, gold, P2P Lending, litigation finance etc.

Litigation finance relies on mugs at both ends.  i.e. consumers that sign up the ambulance chasers and investors putting their money in.

But if you're desperate to invest in it you'd be better off looking at the stockmarket listed companies that do it e.g., Litigation Capital Management Ltd* (LSE:LIT) and Burford Capital Ltd** (LSE:BUR). Burford has a £2.29bn market cap. 

The OP should note that even though these are legitimate, established companies they are still high risk investments.

*An Australian company listed on the LSE.
**Domiciled in Guernsey.

IC on LIT:

https://www.investorschronicle.co.uk/content/0a7ab567-4718-4fb7-bbdf-e4d222f3ffed

IC on Burford:

https://www.investorschronicle.co.uk/content/44d0c321-436d-5dfe-b698-045f55489606

https://www.burfordcapital.com/about-us/

Eyeful

You asked about sites:
1. Watch on you tube:
https://www.kroijer.com/
James Shack: Vanguard Lifestratergy Funds Explained (The only fund you wil ever need?). Investing for beginners
https://meaningfulmoney.tv/2022/09/26/how-much-investment-risk-should-i-take/

2. Read:
https://monevator.com/passive-fund-of-funds-the-rivals/
https://www.biglawinvestor.com/meet-the-gotrocks-family/

poseidon1

wmb194 said:

dunstonh said:

of strange investments. Property, gold, P2P Lending, litigation finance etc.

Litigation finance relies on mugs at both ends.  i.e. consumers that sign up the ambulance chasers and investors putting their money in.

But if you're desperate to invest in it you'd be better off looking at the stockmarket listed companies that do it e.g., Litigation Capital Management Ltd* (LSE:LIT) and Burford Capital Ltd** (LSE:BUR). Burford has a £2.29bn market cap. 

The OP should note that even though these are legitimate, established companies they are still high risk investments.

*An Australian company listed on the LSE.
**Domiciled in Guernsey.

IC on LIT:

https://www.investorschronicle.co.uk/content/0a7ab567-4718-4fb7-bbdf-e4d222f3ffed

IC on Burford:

https://www.investorschronicle.co.uk/content/44d0c321-436d-5dfe-b698-045f55489606

https://www.burfordcapital.com/about-us/

I have been investing in various iterations of  Burford's corporate bonds since 2017.

Currently yielding 5.116% on their 5% 2026 Bond  which is trading just below par ( the lowest yielding bond they have ever offered).

Despite have received interest payments and various redemption proceeds from them in the past with absolutely no problem,  it must be considered a high risk income investment with a Moody's BA2 sub investment grade credit rating.

So definitely not for unsophisticated investment newbies, and probably would not suit the majority of the more experienced investors on this forum. That said, it may well be a small component of one of the many corporate bond unit trust funds that abound, so a Bond fund investor might unknowingly have a tiny exposure to it on a collective basis.

Albermarle

Normally the advice is to limit your money in alternative investments to 10% or even less.
So the priority is to sort out the 95% in more mainstream investments ( and savings ) first. 

I would imagine that it is quite possible to earn 10% investing in property

As mentioned in previous posts, only regulated savings accounts are safe. To get a return above the current savings interest rates of 4/4.5% you have to take a risk.
So by having the potential to earn a 10% return, then inevitably there will be a risk of a lower return or even a loss.