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Traditionally, alternative investments were primarily aimed at institutional or accredited investors due to their complex nature, lack of regulation, and associated risks. However, Stocks and Shares ISAs make it easy for individuals to invest in alternative financial assets with less knowledge and funds.

Alternative investment strategies vary based on the asset being invested in. Some require substantial capital and in-depth research, while others require just a few minutes on the computer.

This article will explore five alternative investment strategies that can help you build your wealth faster in 2025.

Real Estate

Physical properties, property-based securities, real estate crowdfunding platforms, real estate investment trusts, and real estate mutual funds are all classed as real estate investments.

Your real estate investment is likely to appreciate in value over time, and it can also provide a steady, ongoing cash flow.

Art and Collectables

With art, sports and entertainment memorabilia, high-end watches, and other collectables serving as alternative assets, some investments can also act as a hobby.

Investors can find these assets through art dealers, auction houses, or online marketplaces. Art and collectables are likely to either have historical value or develop value over time as related parties (for example, the artist, movie star, or athlete) become more prominent.

Due to the uniqueness of these assets, it's essential to consider the reputation of the art dealer or auction house when exploring avenues to trade.

Hedge Funds

It is possible to invest in hedge funds through hedge fund managers or brokers. However, they are typically only available to accredited investors who have a high net worth and substantial investment capital.

Private Equity

Private equity investments typically involve buying shares in a private company or a group of companies. Investors can do this through private equity firms, venture capital funds, or crowdfunding platforms.

Stocks and Shares ISA

Stocks and Shares ISAs are the second most common type of ISA in the UK, following Cash ISAs. They enable individuals to invest in a variety of alternative financial assets, including private equity, real estate, and hedge funds.

With help from your ISA provider and a range of benefits, this is the most straightforward alternative investment strategy out there. Here are the benefits of an S&S ISA: 

Tax-free allowance: You can invest up to £20,000 every tax year in your ISAs, with the money and any of the profits you make being tax-free. Just remember that the annual allowance should be spread across any ISA accounts you have, and you're responsible for not exceeding the limit. 

Tax-free growth: As the value of your investments increases over time, any profits you make through dividends can be reinvested to help your money grow even further. 

Tax-free withdrawals: When the time comes to sell your investments and withdraw your money, you won't be expected to pay capital gains tax and income tax.

Flexible withdrawals: Some S&S ISAs can be flexible, meaning if you withdraw money that you've contributed during that tax year, you can redeposit whatever you withdrew without using any more of your annual allowance.

Beats inflation: Many people choose an S&S ISA over a Cash ISA to beat inflation, because traditional savings accounts only allow you to earn extra money via the interest rate they offer. This may not be competitive enough, especially when considering the long-term impact of inflation.

Ready To Build Your Wealth Faster In 2025?

There is a range of alternative investment strategies available, some of which require substantial capital, while others don't. It's essential to choose the asset, or assets, that align with your long-term financial goals and investment knowledge. 

We highly recommend starting with a Stocks and Shares ISA, which allows you to invest in a variety of alternative investments while enjoying tax-efficient benefits and support from your provider.

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