Investing in alternative investments: This is how FINEXITY opens the market for private investors

Tangible assets as an attractive form of investment

Whether real estate, art, diamonds, classic cars, luxury watches or fine wine: tangible assets with a high, intrinsic value score points with low volatility — or even considerable returns — even in uncertain times like these.

For example, price increases for real estate in attractive locations in Germany remain enormous despite all odds, such as high inflation and rising interest rates.

The EPX house price index Although there is a slight stagnation in May 2022 due to the development of building interest rates, the trend in recent years is clearly upwards. On the one hand, this is due to scarce living space combined with a strong influx to Germany and economically attractive metropolises. On the other hand, the increasing private wealth of German citizens, which wants to be invested.

At the end of 2021, the Financial assets of private households in Germany achieved a new record of 7.6 trillion euros. Compared to the previous year, this figure rose by around 8.5 percent. However, wealthy Germans do not like to leave their capital in their account or savings account during interest-free periods, but are looking for attractive forms of investment. That is why stand Real estate is also high on the popularity scale among private investors.

Collectors' objects such as art or fine wine are not yet as widespread as investments because many investors have so far lacked the necessary access, expertise or capital. But it is precisely these who are performing well as investments. Art, for example: After a corona related slump, the art market worldwide was able to achieve a fabulous Growth of 29 percent report. According to this, a total of 65.1 billion dollars were spent on art worldwide — even more than before the 2019 pandemic. Fine Wine has also achieved double-digit growth rates in recent years, such as the Liv-ex indices for Bordeaux (Liv-ex Fine Wine 50) or Liv-ex Fine Wine 100 clarify.

For the reasons mentioned above, tangible assets are attractive investment alternatives that have a low correlation with capital markets and at the same time can represent a high, emotional value for their owners. However, many retail investors have hardly been able to benefit from these advantages so far — especially as the entry requirements are usually not met.

FINEXITY opens up the institutional market for private investors

For many reasons, private investors have little access to tangible assets or alternative capital investments:

• Information asymmetry: Investors lack the necessary expertise to appraise real estate, works of art, luxury watches or classic cars.
• A lot of time spent: It would take a long time to acquire the necessary knowledge of specific asset classes. The purchase, tax and storage of diamonds or fine wine, among other things, is also extremely complex.
• High equity ratio: Direct investments in complete tangible assets, such as real estate, are capital-intensive.
• lack of flexibility: Due to the holding period of investments and the speculation period, the money is often tied up for the long term.

In order to avoid these four pitfalls and also provide private investors with market access to professionally selected, alternative capital investments, FINEXITY has developed a marketplace for digitized tangible assets.

The use of blockchain creates high-class assets tokenized (“digitally pieced”). In this way, investors can put together their own tangible asset portfolio based on specific properties and benefit from their return opportunities just like an owner.

Create an attractive portfolio with FINEXITY

However, FINEXITY not only functions as a trading platform, but also guarantees professional management of tangible assets, including selection, purchase, rental and storage. Each property is subject to a strict, multi-stage audit process, which focuses on quality and long-term investment prospects. To this end, FINEXITY draws on a broad network of industry experts, credit analysts and investment bankers who support the selection process with many years of experience in their field.

This strategy “pays off”: Investors can expect exclusive properties and a very good return, such as Luxury property “Blanes One” in Mallorca shows. Local senior real estate managers are specifically looking for properties that meet the strictest criteria — and with success: For example, the forecast performance for “Blanes One” is up to 9.40% per year.

Blockchain technology is also being used to eliminate intermediaries — this saves up to 80% of the costs of a conventional securities issue and means: more return potential for investors — with full flexibility. With FINEXITY, investors can trade their digital shares on the secondary market at any time free of charge. FINEXITY acts as a “match making” platform between buyers and sellers.

How to invest with FINEXITY

In summary, with FINEXITY, you can put together an attractive portfolio of tangible assets in just a few steps:

• You select an object on the FINEXITY marketplace and register.
• All details about the investment object, such as exact data, the number of available tokens and the forecast interest rate or return perspective, are listed on the respective detail page.
• You invest at least 500 euros and can view the development of your portfolio at any time in your FINEXITY dashboard.
• You can flexibly buy/sell your digital shares via the secondary market.
• Or you remain invested and FINEXITY accompanies the sale and — minus all brokerage, management and sale costs — distributes 80% of the proceeds from the sale to all invested investors.

Start here by diversifying your portfolio.