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Costs of entry will vary...

What is the minimum investment for alternative investments?

The investment for alternative investments can vary vastly, depending on the specific domain of each asset category and the investment instrument involved. Here's a helpful hint highlighting various alternative investments and their typical thresholds:

  1. Whiskey and Bourbon
    • Directly purchasing bottles of rare whiskey (see Collectibles) will depend on the rarity of the bottle.
    • Investing in Whiskey Equity Investment Trusts (WEITs) through The Bourbon Reserve with a minimum investment of $25,000.
    • Participating in distillery crowdfunding platforms will vary substantially.
    • Investing in whiskey or premium spirits-focused mutual funds or ETFs are a low cost of entry.
  2. Real estate:

    • Direct property purchases primarily require a sizable sum for the down payment and accompanying acquisition costs.
    • Real Estate Investment Trusts (REITs) or real estate-focused ETFs and mutual funds usually have significantly smaller starting sums, sometimes as low as a single share or unit price.
  3. Private equity and venture capital:

    • Direct investments in private companies or start-ups are generally geared towards accredited investors, with minimums ranging from thousands to millions of dollars.
    • Private equity and venture capital funds often have elevated entry levels, typically in the tens or hundreds of thousands of dollars.
    • Equity crowdfunding platforms may offer more modest minimums, starting from a few hundred dollars.
  4. Hedge funds:

    • Hedge funds habitually have high investment hurdles, often demanding a minimum commitment of $100,000 or more, primarily catering to accredited investors.
    • Funds of hedge funds could present lower limits, possibly starting from tens of thousands of dollars.
  5. Commodities:

    • Direct investment in physical commodities, such as gold or silver, can begin with buying a single coin or small bar, which could cost just a few hundred dollars.
    • Commodity-focused ETFs and mutual funds may have minimum investments similar to traditional funds, ranging from as low as a single share price to several thousand dollars.
  6. Collectibles:

    • The initial outlay for collectibles, like art, antiques, or coins, can vary widely based on the specific item's value, ranging from a few dollars to millions.
  7. Infrastructure and structured products:

    • Minimum investments for these assets can differ dramatically depending on the investment vehicle and underlying assets, possibly spanning from thousands to millions of dollars.
  8. Cryptocurrencies:

    • Investing in cryptocurrencies can start with a small sum, as many exchanges allow purchases of fractional coins or tokens.
  9. Peer-to-peer lending (P2P) and crowdfunding:

    • Platforms for P2P lending or crowdfunding often have relatively low minimum investment amounts, possibly starting from as little as $25 or $50 per loan or project.

Remember that these minimums are merely rough references, and specific investment opportunities might have different requirements. It's wise to research each investment thoroughly and consult a financial advisor to ensure suitability based on your financial goals and risk tolerance.

About the author

Andrew Newby

Andrew is a passionate entrepreneur and experienced tech strategist with a deep love for the Bourbon industry. As the CEO of The Bourbon Reserve, he leads the charge in navigating the exciting world of Bourbon investments. Andrew's entrepreneurial spirit extends to co-founding The Toledo Spirits Co. and HEAVY Beer Co., where he has played an instrumental role in their growth and success. Alongside his ventures in the spirits industry, Andrew boasts a strong background in software product development, making him a versatile leader in both the Bourbon and tech worlds.