Alternative investments cover everything that is neither stocks, bonds nor cash: unlisted real estate, lending to businesses, private equity, gold, commodities, collectibles and more. Investors add them to a portfolio because they do not react to the same events as the stock market and can offer more attractive returns than bank savings accounts. But the trade-off is almost always the same: your money is tied up for longer, and you cannot always get it back when you want to. In this article, I go through the main alternative investments worth considering and how they work.
Alternative Investments: A Guide to Diversifying Your Portfolio
Note: this article is educational in nature and does not constitute investment advice or individualised tax advice. Your personal situation (residence, income, amounts and objectives) may change the applicable rules. For significant amounts, consult a professional and check the official sources.
What is an alternative investment, in concrete terms?
The definition
An alternative investment is an investment that falls outside the classic trio of equities / bonds / cash.
It is a definition by exclusion, granted, and that is precisely what makes it confusing: it files under the same label a share in a forest in the Limousin, a gold bar, a SCPI unit and a loan to an Estonian SME…
What these investments have in common is not their nature but their behaviour: they do not rise and fall at the same pace as the financial markets. And that is exactly what people are looking for in them!
The three main families
To find your way around a very heterogeneous universe, remember three families.
Real assets.
You own something tangible: real estate, forests, farmland, gold, commodities. Their value depends on a physical market, on rents, on harvests, on supply and demand, rather than on investor sentiment.Private assets.
You finance a company directly, outside the stock exchange: stakes in unlisted companies, loans to businesses, private debt. Your return depends on the borrower's health or the company's growth, not on a share price.Passion assets.
Art, wine, watches, collector cars. Their value rests on a market of connoisseurs, with all the subjectivity that implies.
Why is everyone talking about alternative investments?
There is a "historical" explanation: three things happened almost at the same time in recent years.
First, 2022. That year, equities and bonds fell together. The famous "60% equities, 40% bonds" portfolio, supposed to cushion itself, cushioned nothing at all. Many investors started looking elsewhere…
Next, European regulation shifted. The ELTIF 2.0 regulation, applicable since 10 January 2024, removed the minimum entry ticket of 10,000 euros that in practice closed private-market funds to retail investors, as well as the 10% portfolio limit imposed on savers with less than 500,000 euros. Private equity went from being a product reserved for institutions to a product distributable to the general public!
Finally, online platforms brought entry tickets down. Lending to a company or financing a real estate project no longer requires a fortune: a few dozen euros are sometimes enough, and the eligible audience has expanded considerably.
Why diversify with alternative assets?
Decorrelation, the real benefit
Imagine two boats moored side by side: if they pitch exactly in rhythm, the walkway linking them takes every movement. If they pitch out of sync, the movements partly offset each other and the whole moves far less; stability prevails.
That is exactly what decorrelation in a portfolio does! A loan to an SME does not lose value because the CAC 40 reacted badly to an inflation figure: it loses value if the borrower stops repaying.
Two different risks, triggered by different events.
By combining them, you reduce the amplitude of the variations of the whole.
One important nuance, however: uncorrelated does not mean immune. In 2008, as in March 2020, many assets reputed to be independent fell together, simply because everyone was selling everything to raise cash.
A potentially higher return… in exchange for what?
The figures displayed by alternative assets are often higher than those of conventional investments. This is no coincidence, quite the opposite: you are paid to accept things that are “unpleasant” or riskier.
You are paid for illiquidity, because your money is locked up, sometimes for several years.
You are paid for complexity, because these investments take time to understand.
You are paid for credit risk, because when you lend, the borrower may potentially fail to repay.
Remember this simple rule: an above-average return always compensates for something. If you cannot see what, it means you have not yet identified it, not that it does not exist.
Partial protection against inflation
Some alternative assets mechanically follow rising prices : rents are index-linked, commodities become more expensive, and gold has historically played the role of a store of value.
The argument is real, but partial. In 2022, gold did not protect European portfolios while inflation exceeded 5%, so on this typical example, the protection is observed over long periods, not in every inflationary episode.
What diversification does not do
Three things that are best known before you start.
It does not eliminate the risk of capital loss : it reduces its concentration. That is to say, you can still lose money, simply not all in the same place and at the same time.
It does not work if you replicate the same risk ten times over. Ten loans to ten French property developers is not diversification: it is a single bet on the French property market, cut into ten pieces.
Lastly, it does not improve a poor investment: adding to your portfolio an asset you do not understand does not diversify it, it obscures it.
The 10 alternative investments accessible to private individuals
Let's get to the heart of the matter! Each investment is presented according to the same six criteria, so that you can compare on an identical basis.
Important: the figures quoted are observed data, sourced and dated; they in no way constitute a promise of future returns.
1. Crowdlending (lending to companies)
You lend money to a company via an online platform, in exchange for interest paid according to a contractual schedule and repayment of the capital at maturity. You do not become a shareholder: you are a creditor. Your return therefore does not depend on the company's success, but on its ability to meet its repayment schedule.
In France, crowdfunding as a whole raised 1.76 billion euros in 2025, up 1.8% after two years of decline (Forvis Mazars × France FinTech barometer, 2025 edition).
Key points to remember about crowdlending:
Entry ticket : from 50 to 100 euros depending on the platform
Return : the advertised rates are generally between 7 and 12% gross depending on the project's risk level; the return actually received depends on the portfolio's default rate
Liquidity : low. Exit before maturity only if the platform offers a secondary market, and with no guarantee of finding a buyer
Main risk : borrower default
For whom : an investor seeking regular income, able to tie up their money for 12 to 48 months and to spread it across a large number of projects
2. Real estate crowdfunding
Same principle, but the borrower is a property developer or a property trader financing a specific operation : a residential building, a refurbishment, a housing development. You are repaid when the operation is sold.
In 2025, the French market raised 845 million euros across 1,004 projects, for an average advertised gross return of 11%. But the barometer Forvis Mazars × France FinTech paints a harsh picture: at the end of 2025, 25 to 30% of projects were more than six months behind schedule and 20 to 25% were subject to insolvency proceedings. Roughly one project in two showed significant difficulties.
This is the clearest illustration of the principle stated above: the advertised return is the counterpart of a risk, and that risk materialised!
Looking at the details, here is what you need to know:
Entry ticket : 100 to 1,000 euros
Return : 11% gross on average in 2025 on projects taken through to completion, to be read in light of the delay rates above
Liquidity : none until repayment, with a high risk of extension
Main risk : delay and then default by the developer, in a property market that is still convalescent
For whom : an informed investor, aware that the advertised return is not the return received
3. Unlisted real estate: SCPI and property funds
You buy units in a company that owns a portfolio of offices, of retail premises, warehouses, clinics or housing, and which pays you a share of the rents. You have neither tenants to manage nor works to finance.
In 2025, the average SCPI distribution rate stood at 4.91%, rising for the third consecutive year (ASPIM and IEIF, February 2026).
But the average share price fell by 3.45% over the year, bringing overall performance down to 1.46%. The average masks a wide dispersion: from 4.2% for residential and healthcare SCPIs to around 6% for certain diversified SCPIs…
Key information to remember:
Entry ticket : 200 to 1,000 euros when investing directly, a few dozen euros through a life insurance policy
Return : 4.91% average distribution rate in 2025, excluding any change in the share price
Liquidity : low. Recommended horizon of 8 to 10 years, resale on a secondary market that is sometimes congested
Main risk : a fall in the value of the shares and rental vacancy
For whom : an investor seeking a regular income over a long horizon
4. Private equity
You invest in unlisted companies, through a fund that selects the holdings, supports them for a few years, then sells them on. Your gain comes from the capital gain realised on exit.
Over ten years, the net internal rate of return of French private equity comes to 10.7% per year (France Invest, performance study as at end-2025). This average is misleading: first-quartile funds show 23.1% while last-quartile funds show -6.7%.
Note: in this asset class, the choice of manager matters more than the choice of the asset class itself.
What to remember:
Entry ticket : a few hundred euros since ELTIF 2.0, more often 1,000 to 5,000 euros in practice
Return : 10.7% net per year over ten years on average, with considerable dispersion between managers
Liquidity : very low. Eight to ten years of lock-up for a closed-end fund
Main risk : the dispersion of performance, and a partial capital loss if the manager is poorly chosen
For whom : an investor with a long horizon, able to tie up a sum they do not need
5. Private debt
You lend to mid-sized companies through a specialised fund, in segments that banks have largely abandoned after 2008. The return comes from contractual interest, often at a variable rate, which partially protects against a rise in interest rates.
Key points to remember about private debt:
Entry ticket : several thousand euros for direct investment, a few hundred through an ELTIF or a unit-linked life insurance vehicle
Return : contractual interest, generally higher than that of listed corporate bonds of comparable quality
Liquidity : low, five to eight years depending on the fund
Main risk : borrower default, generally a more fragile party than a listed bond issuer
Who it is for : an investor seeking income who is already exposed to equities
6. Gold and precious metals
Gold produces neither rent nor interest. Its value rests solely on what someone is willing to pay to obtain it. You buy it for what it does in a crisis, not for its current yield.
The past two years provide a spectacular illustration: after a rise of more than 50% in 2025, the ounce reached an all-time record close to 5,600 dollars in January 2026, before correcting by more than 20% within a few weeks!
Over fifty years, gold's annualised performance is around 8%. A safe-haven asset is not a calm asset.
Key points to remember:
Entry ticket : a few dozen euros through a gold-backed index product, a few hundred for an investment coin
Return : no current income. Around 8% annualised over fifty years, with high volatility
Liquidity : high
Main risk : volatility, to which physical gold adds storage and insurance costs and the spread between the purchase price and the resale price
Who it is for : a small defensive allocation, rarely beyond 5% of the portfolio
7. Commodities
Oil, gas, copper, wheat, coffee… They are accessed mainly through exchange-traded index funds, rarely directly. Their prices depend on supply, demand, the weather and geopolitics, i.e. on factors unrelated to corporate earnings. That is what makes them a diversification tool.
Key points to remember:
Entry ticket : a few dozen euros via an index product
Return : price appreciation only, no income, with very irregular performance from one year to the next
Liquidity : high
Main risk : extreme volatility, and a negative carry effect on certain index products that erodes performance over time
For whom : an experienced investor, in a small proportion
8. Crypto-assets
Bitcoin and other digital assets now form a fully-fledged asset class, with a European regulatory framework now in place. The licensing of providers has cleaned up the landscape without reducing the volatility of the underlying.
Key points to remember:
Entry ticket : a few euros
Return : price appreciation only. A track record of high performance, but punctuated by falls of 70 to 80% during downturn phases
Liquidity : high on the main assets
Main risk : volatility, the risk of platform failure, and the permanent loss of holdings if you lose your keys when you hold your assets yourself
For whom : a small pocket, made up of money you are willing to see divided by three
9. Passion assets: art, wine, watches, cars
A painting, a case of fine wine, a rare watch. The pleasure of ownership is part of the return, which is both the appeal and the trap of this category: it is easy to overestimate the value of what you love.
Entry ticket : a few hundred euros in fractional shares, several thousand for direct ownership
Return : appreciation only, highly variable depending on the segment, the artist and the vintage
Liquidity : low. Selling at the right price takes time
Main risk : subjective valuation, high transaction fees at auction houses, counterfeiting and conservation constraints
For whom : an enthusiast who genuinely knows their market
10. Green assets: forests, vineyards, farmland
The forestry and land ownership groups make it possible to acquire shares in collectively managed natural assets. Current income is modest, coming from timber harvests or farm rents, and most of the appeal lies in the appreciation of the land over a very long period and in specific tax and inheritance schemes.
Key points to remember:
Entry ticket : from 1,000 to 5,000 euros
Return: low current income, often in the region of 1 to 3%, plus the change in land prices
Liquidity : very low, with a narrow secondary market
Main risk : climate and health hazards (storm, fire, disease), and illiquidity
For whom : an investor with a very long horizon, often with wealth transfer in mind
What about hedge funds?
They appear in every article on the subject, and yet in almost all cases they are out of reach for you: entry tickets of several hundred thousand euros, distribution reserved for qualified investors… In short, very much not recommended for a conventional retail investor.
So-called “alternative” funds in the European retail format, which draw on their strategies, are accessible, but their performance is generally more modest once fees are deducted. Worth knowing before you go looking for them!
Comparison table of alternative investments
| Asset class | Ticket | Return | Liquidity | Main risk | Taxation |
|---|---|---|---|---|---|
| Crowdlending | €50 to €100 | 7% to 12% gross advertised | Low | Borrower default | PFU 31.4% |
| Real estate crowdfunding | €100 to €1,000 | 11% gross (2025) | None | Delay then developer default | PFU 31.4% |
| SCPI | €200 to €1,000 | 4,91 % (2025) | Low | Fall in the unit price | Income tax scale + social levies 17.2% |
| Private equity | €1,000 to €5,000 | 10.7% net / 10 years | Very low | Dispersion between managers | PFU 31.4% or exemption |
| Private debt | A few thousand € | Contractual interest | Low | Borrower default | PFU 31.4% |
| Gold | A few tens of € | ≈ 8% / year over 50 years | High | Volatility | Specific regime |
| Commodities | A few dozen € | Very irregular | High | Extreme volatility | PFU 31.4% |
| Cryptoassets | A few euros | Very volatile | High | Volatility, platform | PFU 31.4% |
| Passion assets | A few hundred € | Variable | Low | Subjective valuation | Specific regime |
| Forests and vineyards | €1,000 to €5,000 | 1% to 3% + land value | Very low | Climate hazards | Specific regime |
Taxation shown for a French tax resident. Any investment carries a risk of capital loss. Minimum investment amounts, fees and liquidity conditions vary by platform and over time. Past performance is not a reliable indicator of future performance.
What share of your portfolio should you allocate to alternatives?
From 60/40 to 50/30/20
For decades, the benchmark has been the 60/40 portfolio : 60% equities for growth, 40% bonds for cushioning.
The model worked well as long as the two buckets moved out of step with each other. Since 2022, several major asset managers have been proposing a 50/30/20 model, with 20% allocated to alternative assets. This is an institutional framework for thinking, not a prescription that can be applied as is to your situation.
Three profiles, three orders of magnitude
Cautious profile : 0 to 5%. You prioritise having your savings available. A symbolic allocation, in the most liquid assets.
Balanced profile : 5 to 15%. You accept locking up part of your savings for several years in exchange for genuine diversification.
Aggressive profile : 15 to 25%. You already have an established asset base, a long horizon and a solid emergency fund elsewhere.
These ranges are orders of magnitude, not personalised recommendations. Besides, one common-sense rule sums them up: your alternative allocation should be large enough to genuinely change the behaviour of your portfolio, and small enough that its illiquidity never becomes a problem on the day you need cash.
To place this allocation within an overall asset allocation, see our overview of the main types of investments.
The classic mistake: a concentrated alternative allocation
This is the most common mistake, and the most costly! Ten crowdlending positions in a single country and a single sector do not constitute diversification: it is concentrated credit risk, disguised as an alternative asset.
Within your allocation, apply the same principle as to the portfolio as a whole and spread across borrowers, sectors, geographies and risk levels.
How can a retail investor invest in alternative assets?
Online platforms
This is the most direct route of access for lending to businesses, real estate crowdfunding and project financing. You choose your own positions, project by project, starting from very small tickets. In return, the quality of your portfolio depends entirely on how rigorous the platform is in selecting deals. For a detailed overview, see our comparison of alternative investment platforms.
Funds and wrappers
For private equity, real estate or private debt, going through a fund saves you from having to select the underlying assets yourself. Life insurance gives access, through its unit-linked funds, to SCPI, private equity funds and ELTIFs, often with ticket sizes far below those of direct subscription. The PEA-PME, FCPR and exchange-traded index funds complete the toolkit depending on the asset classes targeted.
Buying directly
For physical gold and collectibles, there remains the route of direct acquisition, from a dealer or an auction house. Take all the costs into account: the spread between the purchase price and the resale price, selling fees, storage, insurance. With these assets, fees are often what makes the difference between a good and a bad deal.
The 5 criteria for assessing a platform
Regulatory status, and whether it can be verified.
In the European Union, crowdfunding platforms fall under the European regulation on crowdfunding service providers and must be authorised by the national regulator. In Switzerland, a platform operating as a financial intermediary is affiliated with a self-regulatory organisation. Check the registration yourself, on the official register, rather than relying on the logo displayed on the website.The quality of deal selection.
How are projects analysed? Who decides? What documents are made available to you on the borrower, its accounts and its collateral? A platform that documents its method allows you to judge for yourself; a platform that stays vague is asking you to take its word for it.The full fee structure.
Entry, management and exit fees, commission on the interest received, recovery costs. A headline return should always be read net of all of that.Liquidity and protection mechanisms.
Is there a secondary market, and does it actually work? Does the platform have a provision fund intended to absorb part of the defaults? These mechanisms reduce risk; they do not eliminate it and they never constitute a guarantee.Transparency on defaults.
This is the most revealing criterion. A platform that publishes its late-payment and loss rates, with a clear definition of what it counts, gives you the means to decide. Be wary of a « 0 % default » figure: it often refers only to definitive losses recorded, and not to payments currently in arrears.
The risks to know before you get started
Illiquidity
This is the most underestimated risk, because it is invisible as long as all goes well: your money is committed for a set period, and you cannot unilaterally decide to end it. A secondary market improves matters, but guarantees neither a buyer nor a price.
Capital loss and default
On debt investments, the borrower may stop repaying. On equity investments, the company may fail. In both cases, the loss may be partial or total, and recovery takes years when it succeeds at all.
Valuation opacity
A listed share has a price displayed continuously. A unit in an unlisted fund, a painting or a forest are valued periodically, often using appraisal methods. The value shown on your statement is an estimate, not an observed market price.
Platform risk and regulatory risk
The platform through which you invest is itself a business, and it can run into difficulties. The French real estate crowdfunding market saw this in 2025: several long-standing players ceased operations or went through court proceedings… Check how your claims are held and what happens to them if the platform disappears.
Warning signs
Some signals should make you walk away immediately, without discussion:
A return presented as guaranteed, or capital described as secured.
Pressure to decide quickly, a “window” that is closing, an offer reserved for you.
A regulatory status that cannot be found on the register of the relevant regulator.
Opacity about the identity of the borrowers, the projects or the underlying assets.
Unsolicited approaches, by telephone or messaging.
Taxation of alternative investments
The rules below apply to a French tax resident and are up to date as at the publication date of this article. Tax rules change with every finance act: check your situation with a professional before making any decision.
The default regime: the flat-rate withholding tax
Since 1 January 2026, the general social contribution on investment income has risen from 9.2% to 10.6%. Social levies therefore reach 18.6% on the majority of financial income, which brings the flat-rate withholding tax (PFU) from 30% to 31.4% (12.8% income tax and 18.6% social levies).
This rate applies in particular to crowdlending and real estate crowdfunding interest, dividends, capital gains on securities and capital gains on crypto-assets.
Exceptions to be aware of
Life insurance products retain social levies at 17.2%, i.e. an overall rate of 30% where the flat-rate withholding tax applies. Property income, which concerns SCPI held directly, falls under the progressive income tax scale, together with social levies at 17.2%.
Finally, you may opt each year for the progressive scale instead of the flat-rate withholding tax; the option is global and covers all of your investment income.
The wrappers that change the picture
Holding an alternative asset in a suitable wrapper often changes your net return more than the choice of the asset itself. Life insurance applies its own tax treatment, more favourable after eight years.
The PEA-PME exempts gains on certain eligible securities from income tax after five years, with only social levies remaining due. FCPR funds may give entitlement, subject to holding period and reinvestment conditions, to an income tax exemption on capital gains.
And if you are a Swiss resident?
The framework is very different. Capital gains realised on your private assets are in principle exempt from taxprovided you retain private investor status, overly intensive activity can lead to reclassification as a professional securities dealer, with taxation as income and social security contributions on top.
By contrast, the interest and dividends you receive are taxed as income from movable assets, under the federal, cantonal and communal tax scales. Your assets are also included in the cantonal wealth tax base, at their value as at 31 December.
Finally, a 35% withholding tax is levied at source on returns from Swiss sources. If you are a Swiss resident, you recover it in full by declaring your securities correctly. As rates vary widely from one canton to another, have your situation confirmed by a tax adviser.
Where to start?
If all this seems like a lot, here is how to proceed, in order.
First secure your emergency savings. Three to six months of everyday expenses, immediately available, in a liquid vehicle. Alternative assets are funded with the savings that come after that, never with those.
Set the size of your alternative allocation. A percentage of your financial wealth, decided with a cool head, written down somewhere. That figure is what will stop you being carried away by an attractive yield.
Start with a single asset class, with a small amount. The one you understand best. A modest first investment teaches you more about your own risk tolerance than ten articles, including this one.
Spread over time and diversify within the allocation. Several positions, several maturities, several borrowers. It is repetition that builds diversification, not the amount.
FAQ
What are the main alternative investments?
The main classes accessible to private individuals are crowdlending, real estate crowdfunding, SCPI and property funds, private equity, private debt, gold and precious metals, commodities, crypto assets, passion assets and green assets such as forests and vineyards. Each has its own return, liquidity and risk profile.
How much do you need to get started?
Far less than people think. Lending to companies starts at 50 or 100 euros, gold-backed index funds at a few dozen euros, and SCPI within life insurance also at a few dozen euros. High minimum tickets remain mainly in direct holdings: several thousand euros for private debt or forestry groupings.
Are alternative investments riskier than the stock market?
They are not riskier, they are risky in a different way. A listed share can lose 30% in a month, but you can sell it the same day. A loan to a company does not move day to day, but you cannot exit it and you can lose your entire stake if the borrower defaults. Volatility is lower, illiquidity is higher.
What share of your wealth should you allocate to it?
As an order of magnitude: 0 to 5% for a cautious profile, 5 to 15% for a balanced profile, 15 to 25% for an aggressive profile with wealth already built up. The right level is the one that genuinely changes the behaviour of your portfolio without ever putting you in difficulty on the day you need cash.
Can you get your money back at any time?
In most cases, no. That is the main characteristic of this family of investments. Some assets remain liquid, such as gold or commodity index funds. The others lock up your capital for one to ten years. A secondary market may allow an early exit, but it guarantees neither a buyer nor the price.
Is crowdlending an alternative investment?
Yes. It is a form of private credit: you lend to a business outside the banking circuit and you are remunerated through contractual interest rather than through market appreciation. That is what gives it an income-oriented profile with low correlation to listed markets, and it is also what makes it one of the most accessible entry points in the category.
The Alternative investments are neither a foolproof system nor a gadget reserved for large fortunes. They are tools, each with a specific role: regular income from lending to businesses and from real estate, long-term growth from private equity, protection from gold. The real decision is not in fact “which asset should I choose?”, but “what share of my wealth can I lock up without it becoming a problem?”. Answer that one first, and the rest becomes much simpler! One last piece of advice, valid for all the classes presented here: invest only in what you are able to explain to someone else in two sentences. If you cannot manage that, it is not the right time, and it is probably not the right investment.
About Maclear
Maclear AG is a Swiss peer-to-peer (P2P) lending and crowdlending platform, headquartered in Switzerland. The company acts as a financial intermediary in the non-banking sector and is a member of PolyReg SRO, in accordance with Swiss financial regulations, particularly regarding AML, KYC, and GDPR. Maclear provides individual and qualified investors access to carefully selected business loan opportunities, with integrated risk assessment, a Provision Fund, and a Secondary Market for liquidity.
The content of this article is provided for informational and educational purposes only. It does not constitute investment, financial, tax, or legal advice. Peer-to-peer (P2P) lending and crowdlending investments carry a risk of partial or total loss of capital. Past performance does not predict future results. Liquidity on a secondary market is not guaranteed. Readers are encouraged to conduct their own research and consult qualified advisors before making any financial decisions. The availability of products and services may be restricted in certain jurisdictions.