In today’s unpredictable financial landscape, the conventional wisdom of relying solely on listed stocks, mutual funds, and fixed deposits is slowly giving way to a more dynamic approach — alternative investments. Investors are increasingly looking for new avenues that offer higher returns, better diversification, and insulation from stock market volatility. One such avenue that’s drawing attention, especially among savvy retail and mass affluent investors, is Unlisted Shares.
This article explores how you can build a robust, diversified portfolio using alternative assets — with unlisted shares as a powerful core component.
What Are Alternative Investments?
Alternative investments refer to asset classes outside of traditional equity and debt instruments. These include Unlisted Shares, real estate, commodities like gold, private lending platforms, art, and even collectibles. What makes them attractive is their low correlation with public markets, which helps reduce overall portfolio volatility.
While some of these assets may require higher capital or specific knowledge, platforms like InCred Money have made options like unlisted shares more accessible than ever before.
Why Unlisted Shares Deserve a Place in Your Portfolio ?
Unlisted Shares represent ownership in private companies that are not traded on public exchanges. These companies are often in growth phases, backed by solid fundamentals, and offer early investors an opportunity to tap into value creation before it becomes mainstream.
Here’s why they’re worth considering:
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Potential for high returns
These businesses are often in high-growth sectors with significant upside.
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Access to unique opportunities
Think tech innovators, profitable startups, or mature private companies with long-term plans.
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Diversification
Their performance isn’t dictated by the daily swings of the stock market.
By including Unlisted Shares in your portfolio, you gain access to a lesser-known but increasingly relevant segment of the investment world.
Step-by-Step Guide to Diversifying with Alternative Investments
1. Anchor Your Portfolio with Core Assets
Before diving into alternatives, ensure that your financial base is covered. This includes investments in index funds, PPF, insurance, and emergency savings. Once that’s secure, you’re ready to explore the alternative space.
2. Decide Your Allocation Strategy
Depending on your risk appetite, dedicate 10–25% of your portfolio to alternative assets. Out of that, Unlisted Shares could take up 5–10%, offering a good balance between growth and stability.
3. Mix Different Types of Alternatives
A well-balanced alternative investment portfolio could look like:
- 10% in unlisted shares for long-term equity growth
- 5% in real estate or REITs for asset-backed returns
- 5% in digital gold for inflation hedging
- 5% in P2P lending for fixed income-style cash flow
This approach ensures you are not overly reliant on one segment, spreading your risk while maximizing upside potential.
4. Use Reputable Platforms
One of the biggest risks in the alternative space is credibility. That’s why working with transparent, curated platforms like InCred Money is critical. They bring vetted opportunities, verified pricing, and a safe transaction experience.
5. Rebalance Periodically
Alternative assets, especially illiquid ones like unlisted equity, should be monitored but not over-traded. Review your allocations once a year and make adjustments based on performance, personal goals, and market conditions.
Risk Factors to Keep in Mind
While alternative investments offer exciting opportunities, they also come with unique risks:
- Liquidity constraints, especially with unlisted shares, mean you may not exit quickly.
- Valuation challenges can make pricing difficult without reliable data.
- Longer holding periods are often required to see meaningful returns.
Mitigating these risks involves thorough research, portfolio balance, and relying on credible platforms for access and transparency.
Final Thoughts
Building a diversified portfolio with alternative investments doesn’t mean taking on excessive risk — it means intelligently spreading your capital across various opportunities that aren’t tied to daily market movements. With their potential for growth and diversification, unlisted shares stand out as one of the most compelling options in this space.
