There exists a rising interest in people for alternative investments, with the Indian alternative investment funds doubling up to 72 USD in a span of 5 years. This truly makes an amateur wonder about the future of AIF (Alternative Investment Funds) in terms of secure investment options and a good return on investment. The following article explores and predicts the up-and-coming trends in Alternative investments in the calendar year of 2023 that are backed up by facts and trusted statistics.
It is a well-known fact that alternative investments, as the name suggests, are not comparable to traditional investment options. They come with lesser regulations and are more often than not stable and reliable secondary income sources. Unlike conventional investments that are aimed at institutional and professional investors, alternative investments are also aimed at retail investors.
Alternative Investments Trends for 2023
Analyzing the recent market expansion of Alternative investment markets, one can surely see a clear trend on what sectors tend to be performing better than others and face more investment interest from investors. Following is a list of the top alternative investment trends that are very likely to see an outstanding amount of growth in the year 2023.
It is no secret how the Artificial Intelligence industry is practically ruling the markets. Especially with the launch of ChatGPT via OpenAI, the world is seeing a surge in the usage of AI in various work-related aspects. There also exist AI-powered systems that help analyze market trends and make investment decisions. AI-powered automation is the future of investments as it would be able to make calculated error-free analyses. The market, therefore, sees a high chance of AI incorporation in the alternative investment scenes and changing the face of the game positively.
The healthcare sector, specifically post covid, has seen a whopping amount of growth in recent years. The healthcare field is always a safe investment option as it does well and goes unaffected even in times of recession. The sector frequently comes up with new market-altering technologies. With an investment in healthcare, investors can not only expect high ROIs but also get a sense of creating an impact.
The market value of global art saw a growth of $138.5 billion in the year 2022-23 alone, with a CAGR rate of 31.4%. Art has been a popular form of alternate investment in recent years. Investors put faith in artists who have a guaranteed track record of selling out and bringing in high levels of profit. Artists such as Jeff Koons, Kusama, and Takashi Murakami bring in a high amount of interest from buyers. Different kinds of art bring in different profit ratios depending on the type, for instance, contemporary art or fine art.
Cryptocurrencies are a form of digital currency that is secured by means of blockchain. Cryptocurrencies have huge potential; statistically speaking, when compared to currencies such as gold and bonds, cryptocurrencies have seemingly outperformed these sectors. Bitcoin delivered a high amount of profit to investors that exceeded even U.S. real estate- a sector that has long-standing trust for high returns With most of the modern world going rigorously digital in their work process, the usage of cryptocurrencies is the future of the world.
With the growing geopolitical tension, the war in Ukraine, and a decrease in the value of the dollar, one can predict inflation and recession in the future. During times like these, people look for safe and secure investment options that are less likely to be affected by the change. This is where gold investments come in. All the aforementioned factors play a chief part in the increase in the price of gold, which is why gold is often seen as a safe haven in times of trouble. The year 2023 may see a hike in gold investments due to this precise reason.
A conversation on alternative investment will be incomplete if one doesn’t discuss the real estate market. With the ongoing inflation and unpredictability of the stock market, real estate is a trusted investment option and a refuge for people playing it safe or building their portfolios. Real estate stands to be more predictable and experience an increase in value at times of inflation. Hence, the upcoming year will continue to see growth in real estate investments.
Alternative investments are a growing trend in themselves. The need for a side hustle and secure investment option has given birth to this lucrative field that has gained the trust of millions. It was estimated in 2022 that over 44% of institutional investors increased investment options under alternative investments. They help diversify the investment portfolio and set a precedent of reliability and stability in times of turmoil.
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