Modern-day investors can pump their money into several profitable ventures to build wealth. You can select one of many different types of investment assets or asset classes to invest into, each having its distinct characteristics, benefits, and risks.
Knowing these investment types can help you put together a strong portfolio based on your risk tolerance and personal circumstances. Below are three different types of investment assets you should know as an investor.
Commodities are basic items that you can buy, sell, and interchange with similar goods. These commodities are typically used as materials in the production of other goods and services. A particular commodity’s quality may differ slightly, but specific quality standards are expected when trading them on an exchange. This way, the goods are similar regardless of the producer.
For example, gold is gold, irrespective of its mining location or the company that mined it. Since gold is a valuable commodity, several organizations are actively involved in its mining to satisfy global demand. Reputable mining businesses such as Alamos Gold are good examples of such companies.
Based in Canada, Alamos Gold is an intermediate gold producer with varied production from three North American operating mines. Two of their mines, the Young Davidson and Island Gold Mines, are located in Northern Ontario, while their Mulatos mine is in Sonora State, Mexico. Three Turkish projects: the Kirazli project in the Çanakkale Province, Çamyurt, and the Ağı Dağ project are being run by Alamos Gold, Turkey.
Alamos Gold Inc. halted operations on its Kirazli project after its mining concessions expired due to the Turks’ protests over Alamos’ cyanide use. The Turkish government also accused Alamos of facilitating deforestation by cutting down a higher number of trees than initially declared. However, Alamos CEO, Mr. John McCluskey, says that their organization funds social responsibility and forestry projects in local communities while also reiterating that cyanide use won’t affect the environment as protestors fear.
2. Real Estate and Tangible Assets
Some physical assets such as real estate are considered an investment type or asset class that offers excellent protection against inflation. Because these assets are tangible, they’re often considered more of “real assets” than other investment types. These assets, therefore, differ fundamentally from other assets like derivatives that exist only in the form of financial instruments. These days, you can invest in several tangible alternative assets for portfolio diversification. Esteemed alternative investing platforms such as YieldStreet can help with this need.
YieldStreet is a digital wealth management platform that offers investors several alternative investment opportunities in asset classes like commercial finance, real estate, fine art, litigation finance, and marine finance. YieldStreet investors need a minimum net worth of $1 million, earn $200,000 annually, or make a combined annual income of $300,000 with their spouse to qualify as accredited investors.
However, YieldStreet’s Prism Fund requires a minimum investment of only $5,000 in five income-producing alternative assets. Accredited and non-accredited investors can also put their money into the YieldStreet wallet, a high-yield FDIC-insured savings account. Furthermore, the YieldStreet platform is registered with the Securities and Exchange Commission (SEC) and is highly credible due to several positive YieldStreet reviews.
3. Stocks or Equities
Equities are ownership shares issued by publicly traded companies. These equities are traded on stock exchanges like the New York Stock Exchange or the NASDAQ stock market. Investors can profit from equities when share prices rise or when they receive dividends. Equities are typically subdivided by market capitalization into small, mid, and large-cap stocks.
Investors have several investment asset types to consider when seeking areas to pump their cash into. The points above are three different asset classes you can invest in to reap significant financial rewards.