Traditional stocks have long been the most recognizable and widely used investment vehicle. Even if you’ve never invested, the word “stocks” is instantly recognizable due to its accessibility, media coverage, and historical performance.
One reason for their dominance is the strong institutional support they receive. Governments regulate stock markets for transparency, while investment banks, mutual funds, and pension funds continuously invest in and promote stock markets, which reinforces their importance. This widespread adoption and financial backing make stocks the default investment option for many.
Stocks are a popular way to build wealth, providing liquidity and long-term growth. Yet, their volatility, dependence on market cycles, and exposure to economic downturns make them risky as a sole investment strategy. Many investors are now exploring investments other than stocks to diversify their portfolios and reduce risk.
To build a more balanced portfolio, investors are turning to alternative investments. Diversifying across different asset classes mitigates risk while potentially enhancing returns. This strategy is known as portfolio diversification, a fundamental principle in investing that promotes financial stability.
What is portfolio diversification?
The idea behind diversification is to reduce risk by ensuring that investments are spread out across multiple non-stock investments and low-risk investments other than stocks, so that losses in one area can potentially be offset by gains in another.
The concept of diversification is rooted in Modern Portfolio Theory (MPT), introduced by economist Harry Markowitz in the 1950s. The fundamental principle of MPT is that a well-diversified portfolio can optimize returns while minimizing volatility by avoiding overconcentration in any single asset class. By strategically balancing different types of investments, investors can reduce risk exposure and improve long-term stability.
Investors might be wondering: how to diversify beyond stock? Allocate funds into different alternative investments, such as real estate investments, investing in ETFs, fixed-income securities, and gold and precious metals investing, to create a portfolio that is more resistant to market fluctuations.
In this guide, we’ll explore some non-traditional investment options, as well as sustainable investing alternatives to help investors diversify beyond stocks effectively. Here are seven alternative investment options that can complement your portfolio and deliver diverse growth opportunities.
1. Real estate investments
As one of the best investments besides stocks, real estate opportunities span both passive and active opportunities for generating wealth.
Rental properties
Owning rental properties allows investors to earn a consistent cash flow through tenant payments and potential property appreciation. A stable rental income is possible, but a landlord must actively manage maintenance, screen tenants, and reinforce legal compliance. To make the process more hands-off, hiring a property management company can reduce involvement in the day-to-day running of the property.
Real estate crowdfunding
Real estate crowdfunding is a non-traditional investment option that grants access to real estate investments without the need for large capital. Online platforms allow investors to pool their money to finance residential or commercial developments. In return, they receive a share of rental income or profits.
Real Estate Investment Trusts (REITs)
REITs are publicly traded companies that own, manage, or finance income-generating real estate. For those looking for low-risk investments other than stocks, REITs facilitate exposure to real estate investments without the need for direct property ownership. REITs enable liquidity while offering dividend income and capital appreciation potential.
Passive real estate investing (Mintos)
For investors seeking non-stock investments with passive income potential, passive real estate investing on Mintos is an easy way to earn rental income without purchasing an entire property. With investments starting from just €50, investors can access a diversified portfolio of rental residential real estate and earn returns from rent payments and potential property appreciation.
Unlike traditional rental real estate properties, this approach requires no maintenance or tenant management and is ideal for individuals who want real estate exposure without the associated challenges.
> More on passive real estate investing
2. Fixed-income securities
Bonds present a lower-risk investment alternative with fixed returns.
Among the most stable investments other than stocks, fixed-income securities produce predictable returns through interest payments and lower volatility than equities, when comparing investing in bonds vs. stocks. These non-traditional investment options help investors build financial security while reducing exposure to stock market fluctuations.
Government bonds
Government bonds are considered low-risk investments other than stocks, as they are backed by national governments and have consistent interest payments.
Corporate bonds
Corporate bonds provide higher returns than government bonds but come with varying risk levels depending on the issuing company’s financial health. Investors earn interest payments from corporations that issue bonds to fund business expansion, research, or debt refinancing.
Municipal bonds
Municipal bonds, a non-stock investment issued by local governments, with tax advantages while funding essential infrastructure projects. These bonds help finance public projects such as infrastructure development, schools, and transportation systems.
Bonds (Mintos)
With bonds on Mintos, investors gain exposure to fixed-income securities with smaller capital requirements, making it easier to include low-risk investments other than stocks in a diversified portfolio. Starting from €50, individuals can even purchase bonds instead of entire securities. This approach reduces entry barriers and enhances portfolio diversification.
3. Gold and precious metals investing
Precious metals assure a reliable hedge against inflation and economic downturns.
Gold and silver bullion
Gold and silver bullion are physical assets that are non-stock investments which retain value over time. Investors purchase bars or coins as a store of wealth, particularly during economic instability. While bullion is a stable asset, it requires secure storage and may come with additional costs for safekeeping.
Mining stocks
Mining stocks are considered a non-traditional investment option, giving investors indirect exposure to gold and precious metals by investing in companies that extract and refine these resources.
Gold ETFs and derivatives
Gold ETFs and derivatives provide exposure to gold prices without the need for physical ownership. Gold ETFs track the price of gold, while derivatives like futures and options allow investors to speculate on price movements or hedge against inflation.
> 7 best investment ideas in 2025
4. Exchange-Traded Funds (ETFs)
Investing in ETFs is a cost-effective way to gain broad market exposure while maintaining diversification.
Sector-specific ETFs
Sector-specific ETFs focus on industries such as technology, healthcare, or energy. These funds allow investors to target high-growth sectors without picking individual stocks.
Dividend ETFs
Dividend ETFs consist of stocks that regularly pay dividends. They are ideal for investors seeking passive income. These funds generate consistent cash flow while offering potential capital appreciation.
Mintos Core ETFs
With Mintos Core ETFs, investors can diversify globally with a single portfolio, gaining exposure to a mix of stocks and bonds from different regions, starting from just €50.
Mintos carefully selects ETFs from leading providers of high-quality, tax-optimized investments designed for European investors. By investing in Mintos Core ETFs, individuals can reduce country-specific risks while benefiting from international economic growth opportunities.
> What are ETFs?
5. Cryptocurrency and blockchain
The rapid growth of digital assets has introduced new investment opportunities, resulting in cryptocurrency investments as one of the most exciting non-traditional investment options available today. These assets allow investors to participate in decentralized financial systems and emerging blockchain technologies.
Bitcoin and altcoins
Bitcoin, the first, and most well-known cryptocurrency, has paved the way for thousands of alternative digital currencies (altcoins). Investors can trade or hold cryptocurrencies as speculative assets or use them for transactions in decentralized networks.
Crypto staking and yield farming
Staking allows investors to earn passive income by locking up their cryptocurrency investments in a blockchain network to support operations like transaction validation. Yield farming, a strategy within decentralized finance (DeFi), enables investors to earn additional rewards by lending or providing liquidity to DeFi platforms.
Blockchain ETFs
For investors seeking exposure to the blockchain industry without directly holding cryptocurrencies, blockchain ETFs present an option. These funds invest in companies developing blockchain technology.
> Cryptocurrency for beginners
6. Arts and collectibles as investments
Arts and collectibles as investments are a unique way to build wealth while owning tangible, historically appreciating assets.
Fine art and antiques
Fine art and antiques have long been sought after by collectors and investors alike. Rare paintings, sculptures, and historical artifacts can appreciate in value based on artist reputation, historical significance, and demand in the market.
Wine and whiskey
The market for collectible wines and aged whiskey has grown as investors recognize their ability to appreciate over time. Limited-edition bottles, rare vintages, and well-aged spirits can become highly valuable in global markets.
Luxury goods and memorabilia
Luxury goods and rare memorabilia such as signed sports items or movie props, have consistently appreciated in value. These niche markets appeal to collectors and investors who recognize the exclusivity and historical importance of these assets.
> 10 things you can do with your extra money
7. Sustainable investing alternatives
As investors seek to align their portfolios with ethical and responsible values, these investments ensure a regular return while leading to a positive impact on society and the environment.
Green bonds
Green bonds are fixed-income securities issued to fund environmentally friendly projects such as renewable energy, clean transportation, and sustainable infrastructure.
Sustainable ETFs
Sustainable ETFs focus on companies that meet Environmental, Social, and Governance (ESG) criteria. These funds screen for businesses committed to ethical labor practices, environmental sustainability, and strong corporate governance.
Impact investments
Impact investing directs capital toward businesses and projects that seek to address global challenges, such as clean energy, education, and healthcare. Unlike traditional philanthropy, impact investments aim for measurable social or environmental benefits alongside financial returns.
> More on sustainable investing
Apply alternative investment strategies with Mintos
Diversify your portfolio with investments other than stocks to enhance financial resilience and open up new avenues for wealth accumulation.
Investment options on Mintos
- Loans – Earn regular interest payments, diversify across sectors and regions, and choose between automated or hands-on investing.
- Bonds – Invest from €50, earn fixed returns, and benefit from fee-free investing.
- Passive real estate – Generate monthly rental income from property-backed investments with a lower entry point than direct ownership.
- Smart Cash – Access a AAA-rated money market fund that offers higher interest than traditional savings with same-day withdrawals and no fees.
Disclaimer
This is a marketing communication and in no way should be viewed as investment research, advice, or a recommendation to invest. The value of your investment can go up as well as down, and you may lose part or all of your invested capital. Past performance of financial instruments does not guarantee future returns. Investing in financial instruments involves risk; before investing, consider your knowledge, experience, financial situation, and investment objectives.
Any scenarios or examples provided are for illustrative purposes only. They do not guarantee specific outcomes or returns and should not be relied upon when making investment decisions. Actual results may vary based on market conditions, issuer performance, and other factors.
