Personal finance and savings are two of the most important things that you need to keep in mind in 2024. As inflation is increasing in almost all countries, it is very necessary for you to explore alternative investment options that can act as a hedge against inflation. But which are the best alternative investments in 2024 for beginners as well as seasoned investors? Don’t worry; we have got you covered. 

In this blog, we will discuss the top 5 best alternative investments that you can try out in 2024.

What Are Alternative Investments?

Alternative investments are financial instruments that do not fall under the category of conventional investments, such as bonds, stocks, or cash. These investments are aimed primarily at reducing the risks and uncertainties associated with conventional investments. In 2024, alternative investments will be most popular, known for their liquidity, tangibility and hedging nature against inflation. 

Even though alternative investments have recorded slow growth and decrease in their market share of just 14.9% in December 2023, the cash flow still remains high. The highest recorded market share of alternative investments was in 2022, when it stood at a whopping 15.5%. But if you’re a young investor and looking for a place to start with alternative investments, then don’t worry, as we have put forward a list of the top 5 best alternative investments in 2024!

Top 5 Best Alternative Investments In 2024

2024 is filled with various categories of alternative investments. 

Here are the top 5 best alternative investments that you can definitely try out in 2024:

Private Debts (Private Credit)

Private credit sector will be one of the best places to make an alternative investment in 2024. There are several new kinds of P2P lending instruments that provide debt to individuals, which can be beneficial for you to invest in. In the private credit sector, you can invest as a beginner, as in the first quarter of 2023, the sector grew by $140 billion. This rising trend is expected to continue in 2024 as well. 

Private Equity

Private equity is also one of the most popular forms of alternative investments in 2024. In the first half of 2024, private equity opportunities will arise, most likely in the sectors of AI, ML, and technology. B2B companies will increase their focus on manufacturing and regeneration of industrial activities. This will be a pretty good chance for beginners as well as experienced investors to enter private equity opportunities.

Real Estate 

Real estate is one of the best alternative investments that you can consider in 2024. In countries like US and India, Real estate alternative investments are gaining popularity and their markets have increased in size due to the presence of REITs (real estate investment trusts). REITs are managed by large financial institutions that optimize your investments to ensure the maximum return possible. As a beginner, you can invest in REITs if you don’t want to take risk. 

Hedge Funds

In 2023, hedge funds gathered a cash flow of more than $12 billion, which is impressive. These funds are investment funds that are pooled together and hold liquid assets. If you’re a seasoned investor and want to explore an alternative investment category that can ensure you positive returns in 2024, then hedge funds could be the best option for you. 

Art/Collectibles 

The world of art and collectibles is ever-growing and can fetch you some amazing returns. While there is no exact calculation of market size or returns in this field,. NFTs and digital arts could be the best choices in terms of collectibles. Some artists and public figures sell their NFTs online and you can purchase them. But be sure not to spend too much on NFTs that have no future, like the Monkey NFTs that were overhyped in 2021 and 2022. 

Which Is Best Alternative Investment In 2024?

Real estate and REITs are the best alternative investments in 2024, as they have very low volatility and high liquidity. If you want a good investment for the long term that also acts like a security deposit, then real estate and REITs are the best options for you. But be careful while investing in REITs and make sure that you perform a background check on the organisation that’s providing you with the investment opportunity.

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