EVER considered looking at alternative investments instead of plonking all your spare cash in the stock market? In a market that is wary and exposed to so much risk, whether economics, country-specific, stock-specific or even sector-specific, don’t fret because there are many other assets one can invest in.

There are many other avenues to make your money work for you even if you are not too keen on investing in local or international stocks. Having said that, no investment comes without some risk.

So, before delving into what may seem like an attractive and lucrative investment, it is important to do some homework first.

One interesting alternative investment that has grown more popular over recent years is fine wine investments. There is even a wine index, which is the Liv-Ex Index that tracks the price movements of the top 100 most sought-after fine wines. With a minimum investment amount of RM20,000, one can invest in some fine wines.

Here in Malaysia, there are a number of fine wine investment firms such as Vintage Assets Pte Ltd, and Vineyards Direct Malaysia Sdn Bhd. The typical investment period ranges from three to five years. What is interesting is that once you’ve invested in a case of high grade Australian wine, for example, you can view your investment in the special storage area, and even take it out to drink, if you choose. But of course, that would be a waste of the investment!

Besides investing in fine wines, there are many other alternative investments for investors out there, such as investing in pre-development land, as well as art. However, a word of caution: do your homework before you put your money into any investment.

These investments are more passive than investing in stocks because it lessens the monitoring process, for at least three years. Before deciding on what to invest in, it is important to determine what type of investor you are, either a risk-taker or more a risk-averse type of investor. Only then will you be able to choose the investments that suit you and work for you because honestly, the stock market is not for everyone. It takes a lot of knowledge, information, and some guts as well to play the market.

So don’t give up hope if you find the stock market has not worked well for you. Instead of playing it too safe by keeping your cash in the bank or under your pillow, look for other ways to make your money work for you. At the end of the day, the key to good investments is to have a diversified portfolio. Spread your risk across different asset classes!

By WONG WEI-SHEN

(Source: thestar online – Business)