Every New Year brings investors new opportunity for financial success. And while many investors will stick to the status quo, smart investors will be on the lookout for new investment opportunities and technologies that will bring better returns. And as technology continues to pave the way for innovation, new ways to invest abound.
Here are a few of the platforms and investment strategies smart investors will be trying in 2015.
Crowd-funded consumer notes
Since its inception just a few years ago, the popularity of peer-2-peer lending platforms continues to skyrocket. These platforms work by allowing investors to fund consumer notes ranging from $2,000 to $35,000. But the magic is in the fact that investors can invest as little as $25 in any given note, allowing them to diversify their risk across thousands of notes.
Peer-2-peer services like Prosper Marketplace have proven to be great investment and diversification tools for investors over the past few years, with season returns averaging as high as 11.35%. In fact, every investor who has invested in at least 100 notes on Prosper has experienced positive returns!
The stock market is obviously a top choice for many investors. But picking the right stocks can be challenging. Even if you can spot trends in the market and economy, finding all of the companies that will be impacted by those trends is exceedingly difficult.
Enter Motif Investing. Motif is a new service that aggregates portfolios of 20-30 stocks based around an idea, belief, or trend. So instead of worrying about finding the right companies, you can focus on investing in the ideas you believe in and let Motif do the rest. And whereas most stock trading platforms charge you anywhere from $5-$10 per stock trade, Motif only charges $9.99 for trading an entire motif of stocks.
IPO Access for all
One trend in the tech space is the advent of platforms that give everyone access to investment opportunities previously reserved for large institutions. One of those opportunities will be investing in IPOs.
Loyal3’s mission is to make it easy for anyone to invest as little as $10 in almost any company. Right now they have over 200 companies from which to choose. And, unlike traditional online trading platforms, Loyal3 is 100% fee-free. That’s right, it costs nothing to make trades. But more importantly, they are bringing access to IPO investments to anyone who signs up to their invite list.
Crowd-funded real estate investments
Much like access to consumer notes, real-estate investments have been traditionally reserved for privileged investors or institutions. But there is a new wave or start-ups aiming to shake-up the real estate investment market and bring deal-access to any accredited investor.
Companies like Fundrise and PatchofLand make it possible for accredited investors to invest as little as $5,000 in pre-vetted real-estate deals, allowing investors to diversify across many different properties. With expected returns in the range of 10%-18%, these platforms are sure to heat up in 2015.
Whether you are a seasoned investor or just starting to think about growing your wealth, there are a number of new investment opportunities for you to explore in 2015