4 Investment Options that HNWI should be thinking about.

For the world’s super-rich, ensuring that there are multiple streams of income is the first rule when looking to diversify a portfolio.

In 2020, as the world came to a halt due to the unprecedented pandemic, achieving wealth diversification became a much more challenging fear than many were used to. However, despite the obstacles, the number of HNWIs globally rose by 2.4 percent in 2020, most notably in regions like North America and Europe.

With the distribution of vaccines to several countries, many investors have learned from the turmoils of 2020 when it comes to building and protecting their wealth – which means always being prepared for unpredictability.

So, here are some investments that the rich and HNWI are betting on :

• Collectables

There are some things that will never go out of style. While the value of collecting art has declined in the last year due to the lack of auctions, there are other assets that HNWIs are betting on. The Knight Frank Luxury Investment Index was topped by the exclusive Hermes handbag for the second consecutive year, followed by fine wine and classic cars.

• Real Estate

There are a few reasons why it is important to invest in real estate: It can provide a second, third, or even fourth home to escape to when a crisis hits. The past few years have proven that investing in your space is highly rewarding with rich returns, particularly if you are in a nation still inundated with lockdowns. There is also the potential of getting a return on your investment for your annual rental income. Other income-producing assets that are also popular amongst the wealthy are stocks and bonds.

• Cryptocurrency

Over the last few years, cryptocurrency has hurtled into the public sphere demanding mainstream attention after witnessing the likes of Elon Musk investing heavily in Bitcoin. In 2020, crypto-assets saw a boom of 470% (percent), with Bitcoin’s market value surpassing $1 trillion. While cryptocurrencies are still a volatile market, the rewards could be worth the risk. It is still widely unsure whether crypto is going to be the way of the future, but if it is, the time to invest, according to experts, is now.

• Second Citizenship

If the pandemic has taught the world one thing, you cannot take travel for granted. For the first time since the Second World War, travel restrictions have become the new norm. It does not matter if you hail from a nation with a relatively strong passport. We observed this with the decline of the US passport, which was still subjected to massive restrictions.

However, investing in second citizenship can make all the difference between being stuck in an undemocratic country that may not be handling the virus efficiently to seeing out the pandemic in an idyllic setting with far better economic opportunities. Caribbean nations, like Grenada, Dominica, St Kitts and Nevis, have pioneered the concept and contributed to its evolution, making it the best region to invest in for second citizenship.

Let’s put you on the right path to attaining your Second Citizenship, get in touch.