Diversifying Your Investments Without Using a Bank: A Look at Different Options

2024-04-28 02:00:00

That doesn’t necessarily mean taking reckless risks to divert your funds from the banks. Let’s look at the investment possibilities without going through a bank.

🏠 Physical real estate 3% – 5% per year in Europe and the United States🌆 SCPI4% – 6% per year, less volatile thanks to professional management🥇 Precious metals 1% – 2% above inflation, variable📈 Precious metals ETFs Performance similar to precious metals themselves🌱 Ecological projects 5% – 9% per year, variable🖼️ Art and Variable collections, they can be negative or >10% in exceptional cases💹 Cryptocurrency Returns extremely volatile, highly heterogeneous🔗 Blockchain platforms that could be high, dangerous

Type of investment	Estimated profitability

Real estate, a central pillar of investment

L’real estate still a safe bet for anyone looking to invest. Whether buying properties to rent or operating within an SCPI (Sociétés Civiles de Placement Immobilier), real estate is a potential source of regular income and protection against inflation.

If you want to invest in real estate without going through a bank, you will need the necessary funds to buy it without getting a real estate loan.

Paper stone as an alternative without going through a bank

SCPIs allow investors to put their money into real estate without the management constraints of physical properties.

The return is often attractive (typically between 4 and 8%) compared to other types of secure investment and the minimum financial commitment is generally affordable.

Risks are shared because investments are spread over several different properties and sectors.

The gold and precious metal market

Gold has always been seen as a refuge in times of economic crisis.

Invest inor or other precious metals (such as silver or platinum) can protect against inflation and currency devaluation.

Yellow metal remains popular among those looking to diversify their portfolio. The only way to invest in this item is not to physically buy bars or coins, although a safe place to store them is required.

There are ETFs (exchange traded funds) that reflect the performance of the gold price without the need for direct management.

Investing through ETFs specializing in precious metals offers flexibility while reducing risk.

Green investments: between ethics and profitability

In an era where ecological awareness is growing more and more, green investments be an attractive option.

Investing your money in environmentally friendly projects or companies committed to sustainability can generate financial returns while contributing to responsible global development.

By buying funds, or even by buying a forest, you can get good profitability.

Cryptocurrency: at the heart of technology

At the heart of modern technology, cryptocurrencies and blockchain offer a futuristic yet volatile way to invest money.

Currencies like Bitcoin or Ethereum offer the opportunity for exponential growth despite strong volatility.

This type of speculation can offer a relevant complement to more traditional investment options, especially if combined with a disciplined investment strategy.

By mixing different purchases of cryptocurrencies, you can minimize risks while still being exposed to earning opportunities. Despite the challenges in this space, it may be wise for tech enthusiasts to get involved with a fair share of the wallet.

Art and collectibles market

Perhaps less traditional but just as viable, investing in art and collectibles is still a viable option for diversifying one’s financial investments.

Although it requires a certain level of market knowledge or expert support, buying works of art, vintage wines or collectible watches can be very profitable.

This is an area where passion often meets investment.

When it comes to wine, the general rule remains that the more the drink ages, the more it can gain in value. Choosing an exceptional vintage in a good year and storing it under the best conditions can turn this passion into a wise investment.