7 Alternative Investments That Might Fit Your Portfolio

The appeal of alternatives.

With market volatility causing concern for many investors, it's no surprise that some are looking for alternative investments. These investments are outside the realm of stocks and bonds. In many cases, they aren't directly correlated with stock and bond markets, which can make them attractive, especially in times of turmoil. It's important, though, to carefully consider your portfolio, circumstances and long-term investing plan. Consider consulting with a professional to help figure out what alternative investments are likely to work best and how much of your portfolio should be devoted to them. Remember, any investment comes with the risk of loss. Also, it's vital to know how such investments are taxed. As long as you understand what you're getting into, alternative investments can bolster a portfolio against volatile stock and bond market conditions. Here are seven to consider.

Raw land.

While real estate in general is one of the most common alternative investments, many people think of real estate as buying commercial buildings or homes. However, it's also possible to buy raw land as an investment. There are thousands of acres of raw land for sale all over the country. It hasn't had anything built on it, and, depending on where you buy, you could hold onto it and sell it to developers down the road.

Tax liens.

When a property owner doesn't pay their taxes, a lien can be placed on the property. Depending on where you live, the taxing authority might sell the lien at auction. You can buy the right to foreclose on the property by paying what's owed. This way, the property owner now must pay you (with interest) or you have the right to claim the property and sell it yourself.

Oil and gas MLPs.

As an investor in a master limited partnership, or MLP, it's possible for you to receive tax-sheltered distributions from the profits. This is an interesting type of investment because an MLP has a legal structure that includes aspects of a limited partnership while also being organized as a publicly traded partnership. Because MLPs are organized for natural resources and real estate, when you invest in them, you're investing in partnerships that deal in assets that can be touched, and for some investors that's a great draw.

Precious metals.

Other assets that can be touched include precious metals like gold and silver. It's even possible to invest in other metals, like platinum. What's interesting to note is that some of these metals are used for industrial purposes, and not just in adornments or as a store of value. However, it's important to understand what you're investing in whether you receive bullion or coins or invest in some other way.

Art and collectibles.

Another interesting alternative investment is art. Over time, certain artwork can improve in value, and it's even possible to buy shares in paintings through platforms like Masterworks.io. However, art can be extremely illiquid and hard to move, so it's a good idea to understand what you're getting, and where you can sell it. As with art, there can be value when you invest in collectibles. There's a wide selection of potentially valuable collectibles: Stamps, coins, baseball cards, action figures and even cars can all make valuable investments. If you know how to find value and you have an idea of where you might be able to sell the collectibles later, you could potentially turn a good profit -- all without going near the stock market.

Venture capital or angel investing.

Rather than trading stocks on the market, you could potentially make a lot of money by getting in on the ground floor of a new business. By providing capital to a startup, you have the chance to reap some of the benefits of ownership. If the company is successful, you could share in the profits by selling your early shares or benefiting in some other way.

Cryptocurrency.

Some investors are starting to see cryptocurrency as an asset class. If you're looking at alternative investments, there are a number of ways to get bitcoin and other cryptocurrencies. It's important to be careful with cryptocurrency, since it's such a new investment, but if you have extra cash and an interest, there might be some solid opportunities to grow your wealth in a way that doesn't rely on stocks, bonds and other more established investments.

Alternative investments that might fit your portfolio:

-- Raw land.

-- Tax liens.

-- Oil and gas MLPs

-- Precious metals.

-- Art and collectibles.

-- Venture capital or angel investing.

-- Cryptocurrency.

Miranda Marquit has more than a decade of experience covering financial markets, investing, business, and personal finance topics. She has made contributions to a wide variety of media outlets, including Forbes, NPR, FOX Business, Entrepreneur, Yahoo! Finance, USA Today, Investopedia, The Balance, and MSN Money, in addition to U.S. News & World Report. Miranda has a master's degree in journalism from Syracuse University and is working on her MBA. She also writes about personal finance and investing for her blog "Planting Money Seeds" and contributes to the successful Money Tree Investing Podcast. When not writing about money, Miranda enjoys spending time with her son, traveling, reading, and the outdoors.