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[Beginners’ Guide] Alternative Investments In Singapore – Peer-To-Peer Lending, Robo-Advisors, Overseas Properties, Commodities

Investments go beyond stocks, ETFs, REITs and bonds. Here’s a beginner’s guide on the common alternative investments available.


When you think about investing, the most common instruments you would think of are stocks, ETFs, REITs and bonds. However, there are alternative investments that exist beyond these conventional financial assets.

What Are Alternative Investments?

Alternative investments are defined as investments that perform differently from stocks and bonds in the public equity market. They are a means for investors to diversify their investments.

As they perform differently from the public equity market, alternative investments give you a chance to reduce your exposure to market volatility.

Before diving into the types of alternative investments, here are some articles to introduce reasons why some investors venture into alternative investments.

4 Types Of “Alternative Investments” The “Average” Singaporean Should Steer Clear Of

5 Fringe Alternative Investments Singaporeans are Trying

5 Reasons You Need To Diversify Your Bond Investments

Robo-Advisors

Robo-advisors are an increasingly popular way of investing in ETFs. They are a digital financial advisor that constructs and rebalances a personalised portfolio for you based on strategic algorithms or mathematical rules.

The logic behind Robo-advisors is to avoid the behavioural bias that sways retail investors to buy or sell stocks based on impulse or market changes. Automating the portfolio construction and rebalancing process increases the probability of higher long-term returns.

Here are some articles you can read about Robo-Advisors, or using them:

Investing In ETFs: Do-It-Yourself Or Use A Robo-Advisor?

How Much Does It Cost To Invest With A Robo-Advisor Versus A Traditional Investment Manager?

Step-By-Step Guide To Opening An Account And Investing Through Singapore-Based Robo-Advisor StashAway

Complete Cost Guide To Robo-Advisor Fees For Singapore Investors

AutoWealth Review: Here’s What I Like About Investing With This Robo-Advisor

What Fee Stacking Means For Your Robo-Advisor Investment Cost In The Long Run

How Singapore Robo-Advisor StashAway Invests Your Money: Economic Regime-Based Asset Allocation (ERAA)

Investing With Syfe: 5 Things You Need To Know About Singapore’s Newest Robo-Advisor

Robo Advisors in Singapore: What You Need To Know Before Investing

Overseas Properties

Overseas properties remain an attractive form of alternate investment for the investor looking to make recurring passive income.

For property investors who are already heavily exposed to the Singapore market, investing in property overseas is a great way to diversify or increasing returns.

Here are some articles you can read about overseas property investments:

Buying An Overseas Property – Is It Ever Worth Your Money?

4 Reasons Why You Should NOT Be Investing In Overseas Property

4 Promises By Overseas Property Developers That Should Make You Wary

3 Myths To Debunk About Overseas Property Investments

Peer-to-Peer (P2P) Lending

Peer-to-Peer (P2P) lending is the lending of money to individuals or businesses through online platforms. Lenders are able to use their money to finance others’ loans in return for interest on the money lent out.

This allows an individual or company to obtain a loan from other individuals rather than borrowing traditionally from a bank.

For the lenders, this is an opportunity to gain higher returns and expand their investment portfolio. However, P2P lending comes at the risk of borrower defaulting, and being unable to return the promised yield.

You can read the following articles to gain a better understanding of P2P lending:

(Updated) What Is P2P Lending And How Can You Invest In Singapore

Is Your P2P Platform’s Interests Aligned With Yours?

P2P Lending: What To Look Out For In Secured Loans

Success Story – P2P Loan To Manufacturer

Commodities

Another form of alternative investment is the investment of tangible assets such as wine, watches, rare coins, stamps or even precious metals.

Here are some examples and articles about commodities investments you can read:

How Do Wine Investments Really Work?

Do Precious Metals Offer Wealth Protection?

5 Interesting Commodities You Never Knew You Could Trade

More Beginners’ Guides To Check Out

Enjoyed this beginners’ guide? Here are guides on other topics that you might also be interested to read:

[Beginners’ Guide] Buying Insurance In Singapore

[Beginners’ Guide] Fresh Graduates’ Guide To Starting Work In Singapore

[Beginners’ Guide] How To Start Trading In Singapore

[Beginners’ Guide] How To Start Investing In Singapore

FSM INVEST Expo 2020

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