For years, alternative investments such as real estate, private equity, infrastructure, and agriculture were largely reserved for institutional investors and high-net-worth individuals. The barriers to entry—high capital requirements, complex legal structures, and long holding periods—made it difficult for everyday investors to participate.
However, the investment landscape is evolving. Fractional investing is making it possible for individuals, SMSF trustees, and sophisticated investors to access these high-value asset classes without the need for significant upfront capital.
Whether you are looking to diversify your portfolio, generate passive income, or access private market opportunities, alternative assets can play a key role in building long-term wealth.
Why Consider Alternative Investments?
Alternative assets offer diversification benefits and potential for stable, long-term returns. Unlike equities, which can be highly volatile, many alternative investments provide defensive exposure to markets that are less correlated with traditional stocks and bonds.
Some key benefits of alternative investing include:
- Portfolio diversification – Spreading investments across different asset classes can help reduce overall risk exposure.
- Access to stable, income-generating assets – Many alternative investments, such as real estate and infrastructure, provide steady income through rent, dividends, or asset appreciation.
- Long-term capital growth – Private market investments often have longer horizons but can deliver higher returns compared to public markets.
- Inflation protection – Assets like real estate, infrastructure, and agriculture have historically performed well in inflationary environments.
How to Start Investing in Alternative Assets Without Significant Capital
1. Leverage Fractional Investing to Access Private Markets
One of the biggest challenges in alternative investing has been the high capital requirements. Direct ownership of commercial real estate or infrastructure projects can require significant upfront capital and ongoing management.
Fractional investing enables investors to own a portion of high-value assets without needing to fund the entire purchase. This approach is commonly used in property funds, private equity syndicates, and emerging investment platforms that allow individuals to participate with lower capital commitments.
Platforms like Assetora provide access to institutional-grade alternative investments, allowing investors to diversify into real estate, private markets, and other alternative assets with a lower minimum investment threshold.
2. Diversify Across Multiple Alternative Asset Classes
Alternative assets are broad and can provide various types of exposure. Instead of allocating all capital to a single investment, investors can spread funds across multiple asset classes, such as:
- Real estate – Exposure to commercial, industrial, and high-value residential properties.
- Private equity – Access to private companies with strong growth potential.
- Infrastructure – Investments in transport, energy, and essential services.
- Agriculture and farmland – Long-term investment opportunities with stable returns.
By building a diversified alternative portfolio, investors can mitigate risk while accessing unique opportunities that were traditionally only available to institutional investors.
3. Consider SMSF Investment Strategies
Self-managed super funds (SMSFs) are increasingly using alternative investments to create a more diversified retirement strategy. SMSF trustees looking to reduce exposure to equities and fixed-income products are turning to commercial property, private equity, and infrastructure assets as part of their long-term planning.
Some key benefits for SMSF investors considering alternative assets:
- Tax efficiency – Investments made through an SMSF may benefit from concessional tax rates, helping to maximise after-tax returns.
- Asset security – Many alternative investments provide a level of stability and are less volatile than equities.
- Long-term wealth planning – Real estate and infrastructure investments align with the long-term nature of superannuation funds.
Fractional investing platforms such as Assetora offer SMSF investors access to a wider range of alternative investment options, improving portfolio diversification while maintaining compliance with SMSF regulations.
4. Maintain Liquidity with a Secondary Market
A common concern with alternative investments is liquidity. Unlike shares, which can be bought and sold on public exchanges, many alternative assets require long holding periods.
However, some platforms, including Assetora, provide a secondary market where investors can buy and sell fractional investment units, improving liquidity and giving investors more flexibility to manage their portfolios.
5. Adopt a Long-Term Investment Mindset
Alternative investments are generally not designed for short-term speculation. They tend to have longer investment horizons and are better suited to investors looking for sustainable, long-term capital growth and income generation.
For those willing to hold investments over multiple years, assets like commercial property, private equity, and agriculture can provide consistent returns and serve as a hedge against market volatility.
Final Thoughts
Alternative assets are no longer out of reach for individual investors. Thanks to fractional investing and secondary market access, it is now possible to participate in high-value private markets without needing millions.
By adopting a diversified investment approach and leveraging innovative investment platforms, investors can gain exposure to institutional-grade alternative assets with lower entry barriers and greater flexibility.
For those looking to explore new ways to invest, Assetora offers access to a range of alternative investment opportunities, allowing individuals and SMSFs to build stronger, more resilient portfolios.
Discover the benefits of alternative investing today.