A report by The Centre for Financial Insight revealed the findings behind a recent JNLI survey about investors and their views on alternative investing. The interesting article illustrated the lack of knowledge about alternative investing procedures across a wide bracket of age groups, which the CFI describes this as an “educational opportunity” for the financial sector and highlighted the scope of the present opportunity available. We spoke with Jezri Mohideen, a finance expert about alternative investing and he told us that there is a big chance to make a profound impact by educating people on the techniques of alternative investing.
An Alternative
Obviously the first step in educating people on the subject is providing a definition of alternative investing itself. However, as noted by the Chartered Alternative Investment Analyst Association, the concept isn’t as blunt and to-the-point as it may appear. They stated that the definitions of what constitutes an alternative investment varies substantially, and that it is a “Largely new field for which consensus has not emerged – and [consensus] will probably always remain elusive.”To put it as simply as possible, alternative investing is an alternative to the traditional stock market. This means that anything people acquire – be it antiques, old guitars to art and wine collections – can form an entirely individual investment class and the hope is that these newly defined classes will prove lucrative for those involved. Of course, this is the most basic definition and alternative investing can actually be a much more complex structure, as illustrated by the London Stock Exchange’s sub-market, the AIM.
AIM
The AIM has much lower barriers to enter, and therefore provides ample opportunity to smaller businesses. Growing companies have the potential to raise capital and possibly even become one of the top earners on the big market someday. The AIM is alternative investing in its method, even though the predominant portion of its underlying mechanics are traditional. The differences like in aspects such as the types of companies that comprise the market, its liquidity and the actual behaviour of the market itself. The AIM all-share index has not at all come close to its all-time high during the dotcom boom, but this reason could actually be one of the reasons those with a true knowledge and understanding of alternative investing are so interested in the AIM. The general public isn’t as forthcoming to welcome these alternative investment opportunities; hence the need for increased awareness. The growing category of alternative investors provides a plethora of new opportunities that can meet the varying and demanding means of businesses in London.
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