In a rather chaotic interest rate environment, many investors are turning to alternative investments. Although these may be attractive, they always involve a high risk. It is best to be vigilant before you start and always make sure you diversify your portfolio. It is then necessary to know the few assets on which the AMF or Autorité des Marchés Financiers strongly recommends caution.
The AMF calls for caution
Alternative investments always seem particularly attractive. But if their return is particularly high, it should also be noted that the risk borne is particularly high. While there is a chance of making a big profit from investments in such assets, it is also likely to lose capital in the event of unfavourable speculation. It is even possible to lose even more than what you have placed. So what are the assets to be wary of? Taking into account the AMF’s recommendations?
Some risky investments
Here are some risky assets that, according to the AMF’s recommendations, should be treated with caution:
- Real estate crowdfunding consists of investing in real estate through equity financing. Here, the investor expects an attractive capital gain at the time of resale.
- Investing in wine consists in buying great wines whose management, conversation and sale are carried out by a dedicated company. Returns are promising, commensurate with the risks.
- Binary options and Forex: although the principle is quite simple and the gains promised are quite substantial, we must not lose sight of the risks involved in speculative trading. Even if you rely on a regulated broker operating legally, the risks remain real, and should not be neglected.
- Theoretically, investing in sustainable development is successful. More specifically, it is a question of focusing on renewable energies such as wind turbines or photovoltaic panels. The principle is simple: it involves buying devices (panels in particular) for later reimbursement.
- Alternative investments also include investment diamonds. The value of this investment is expected to continue to increase as demand continues to grow. But you never know how it will really evolve over time.
- In addition to investment diamonds, mention should also be made of metals or precious minerals whose value is expected to increase with low production and/or rising demand.
- There are also investments in livestock: dairy cows, running hair or other. This market is presented as promising, with high returns. But this remains particularly risky.
These particularly risky investments should be treated with caution. Above all, you should not invest all your capital in this type of asset. Nevertheless, it can be used to diversify the portfolio and maximize gains.