Opinion 

The Periodic Table of Alternative Investments

Katherine Wilson

Katherine Wilson

There are so many aspects behind all the various ways to invest.

This is why the Periodic Table of Alternative Investments was created by CoInvestor, to help private investors understand the myriad factors that influence the investment process.

The table is split into five sections: Investment Elements, Asset Classes, Sectors, Structures and Participants – it is by no means exhaustive but frames the what, who, where, when and how that drives investment decisions.

Investment Elements: The largest of the sections, this clarifies to individuals what must be contemplated before they begin investing. This includes 10 sub-sections covering information that ranges from risk management to value determination and interest rates.

Too many people who enter the world of investment can be unaware of the potential rewards and risks surrounding investment. Therefore, the Investment Elements section is truly invaluable and will ensure basic mistakes are not made.

The Asset Classes section elaborates on what should be considered when it comes to each separate kind of asset and understanding this section is vital to make the most of an investment.

The fact that there is a wide array of possible assets, such as hedge funds, start-ups and real estate, simply emphasises how the investor should make sure due diligence is done in order to maximise returns.

The Sectors section enlightens potential investors on what’s involved with the eight popular sectors that people invest in, including technology, healthcare and infrastructure. In addition to knowing the basic elements and assets involved with investment, the sector that’s targeted will have a huge effect on the results.

Every potential investor will have a different set of capabilities and interests; therefore, recognising which sector would be best for them is significant in reaching their aims.

Regarded as one of the more unfamiliar components of investment, the Structures segment provides a solid explanation regarding a number of investment arrangements that potential investors should be aware of, such as tax efficiency and due diligence.

These are likely to be structures that investment beginners don’t know much about, so learning more about them will have them far more prepared to handle issues related to them.

Making up the fifth and final section is Participants, which explains the numerous kinds of people and groups who are involved with the investment process, such as institutional investors and angel syndicates, and how they can assist potential investors.

When investing, especially for the first time, individuals certainly can’t do it by themselves, and should seek help from experts.

Regardless of what’s being invested, the infographic could benefit a potential investor, with even an experienced one being able to consider one or two elements that hadn’t crossed their mind before, or had been overlooked.

With the information presented in an easily digestible format in separate sections, potential investors can be assured they will be fully informed and put in good stead to reach their intended investment goals without making unwise errors.