Beyond Stocks: What Can You Invest In When You Want to Diversify

When it comes to growing your wealth, most people immediately think of buying stocks. But here’s the reality: that’s just one piece of the puzzle. If you’re wondering what can you invest in beyond traditional equities, you’ll discover a surprisingly wide world of opportunities waiting to help you build a more resilient portfolio. Whether you’re nervous about market volatility, want to hedge your bets, or simply prefer different types of assets, there are plenty of ways to put your money to work without touching the stock market.

The beauty of exploring alternative investment options lies in a fundamental principle: diversification. By allocating funds to investments that don’t move in lockstep with the stock market — or even move in the opposite direction — you’re using proven portfolio strategy to reduce overall risk. So let’s explore what can you invest in beyond the traditional equity world.

Why Look Beyond the Stock Market?

Think of stock market investing as one lane on a multi-lane highway. Yes, it’s well-traveled and familiar, but it’s not the only way forward. The stocks you might invest in can swing wildly based on economic cycles, corporate earnings, and market sentiment. When you diversify into non-correlated assets, you’re essentially creating a financial cushion. If stocks dip, your other holdings might hold steady or even rise, keeping your overall wealth more stable.

This approach becomes especially valuable during market downturns. History shows that investors who had only stocks in their portfolios during past crashes suffered significant losses, while those who had diversified holdings weathered the storm better. So the question isn’t just “what can you invest in” — it’s about building a strategic mix that aligns with your risk tolerance and time horizon.

Real Estate Without Breaking the Bank: REITs Explained

Here’s the challenge with real estate: it typically requires substantial capital, detailed local market knowledge, and ongoing management headaches. Unless you have several hundred thousand dollars sitting around and enjoy being a landlord, direct property ownership might not be practical.

Enter Real Estate Investment Trusts (REITs). Think of them as a democratic way to gain real estate exposure. REITs pool investor capital to purchase and operate properties across various sectors — residential apartments, commercial office buildings, shopping centers, industrial warehouses, and hospitality properties. The generated rental income then flows back to you as the shareholder. This structure lets you own a slice of real estate portfolios worldwide without needing to manage tenants, deal with maintenance emergencies, or spend weekends showing properties.

For investors asking what can you invest in for exposure to real estate without massive capital requirements, REITs offer an elegant solution that also provides better liquidity than owning physical properties directly.

Lending Your Way to Returns: Peer-to-Peer Lending

Digital platforms have democratized lending. Services like Prosper and Lending Club have created peer-to-peer (P2P) lending marketplaces where individual investors like you can fund loans to borrowers, earning interest as they repay.

The process is straightforward: you can start with as little as $25, funding small portions of various loan requests. As borrowers make payments, you receive your share of the principal and interest. The catch? Default risk. If someone doesn’t repay their loan, you lose that investment.

However, there’s a practical workaround: diversification at the individual loan level. Instead of putting all your money into one loan (which could wipe you out if that borrower defaults), imagine spreading $1,000 across 40 different loans. Even if several borrowers default, your overall returns can remain positive. This micro-diversification strategy transforms P2P lending from a reckless gamble into a calculated risk.

Safe and Steady: Government-Backed Securities

If you’re risk-averse and asking what can you invest in with minimal volatility, government securities deserve serious consideration.

Savings Bonds are issued by the U.S. federal government and pay interest over specified periods. The security they offer is unmatched: you can only lose money if the U.S. government defaults on its obligations — an outcome most investors consider extremely unlikely. You have two main options: Series EE bonds (which pay a fixed interest rate) and Series I bonds (which adjust based on inflation rates). For conservative investors, these provide peace of mind that stocks simply cannot match.

Certificates of Deposit (CDs) function like savings accounts with a commitment. You deposit funds for a set period (ranging from three months to five years), and in return, you receive a guaranteed interest rate protected by the Federal Deposit Insurance Corporation (FDIC). Withdraw early, and you’ll face a penalty. While CD returns typically won’t rival long-term stock market gains, they’re backed by the full faith and credit of the U.S. government, guaranteeing you won’t lose your principal.

These instruments prove that “safe” doesn’t have to mean “zero return.” You’re simply trading higher potential gains for absolute security.

Building Wealth Through Tangible Assets

Investors often overlook physical assets that exist entirely outside the stock market ecosystem. Here’s what’s available:

Gold has captivated investors for centuries as a wealth preservation tool. You can approach gold investment through multiple channels: physical bullion, coins, shares in gold mining companies, gold futures contracts, or mutual funds specializing in precious metals. If you choose to hold physical gold directly, ensure you have proper storage (like a safe deposit box). The Federal Trade Commission reminds investors that gold prices fluctuate and that selecting a reputable dealer is crucial — especially important if that dealer also stores your gold securely.

Commodities Futures offer a way to speculate on future supply and demand of various goods — from agricultural products like corn and wheat to industrial metals like copper. As commodity prices change, so does the value of your contract. The upside? Significant profits are possible. The downside? Equally significant losses. This avenue can serve as an inflation hedge but requires navigating a complex, highly competitive market with substantial risks. Only pursue this if you truly understand what you’re doing.

The Bond Market Opportunity

Bonds represent corporate debt and government borrowing, and they offer a different return profile than stocks.

Corporate Bonds are debt instruments issued when companies need to raise capital. When you buy a corporate bond, you become a creditor — you’re lending money to the corporation. They pay you interest regularly (the coupon), then return your principal at maturity. The interest rate depends on perceived default risk; riskier companies pay higher rates to attract investors. Unlike stock ownership, bondholding doesn’t give you any claim to company profits if business booms. However, this works in your favor during downturns: you receive the same interest payment regardless of corporate performance, making returns more predictable than stocks.

The tradeoff: while corporate bonds are often quite safe, they’re not risk-free. Bankruptcy or default could mean losing most or all of your investment.

Municipal Bonds follow a similar structure but are issued by city and state governments for projects like school construction or highway improvements. The compelling feature? Tax advantages. Interest earned on municipal bonds is typically exempt from federal income taxes and often exempt from state and local taxes as well. This tax shelter can make a slightly lower interest rate on a muni bond competitive with — or even superior to — a higher-rate corporate bond after taxes.

These questions matter: what can you invest in that provides steady income? For many investors, the bond market answers this question more reliably than stocks.

Real Estate Meets Rental Income: Vacation Rentals

Some investors combine real estate appreciation potential with current cash flow through vacation rentals. Buy a property in a desirable destination, use it yourself during vacations, then list it on rental platforms for other travelers during your off times. As the property hopefully appreciates over years, the rental income can offset or even exceed your ownership costs.

The challenge? Vacation properties lack the liquidity of securities. If you suddenly need cash, you can’t instantly sell a house — you’d need to find a buyer, which might take months or longer. This approach demands a longer time horizon and patience.

Digital Currency: Bitcoin and Cryptocurrencies in 2026

Cryptocurrencies represent one of the most polarizing investment categories. Bitcoin, the original and most recognizable cryptocurrency, remains the standard-bearer, though hundreds of alternatives exist.

The reality about cryptocurrencies: they’re extraordinarily volatile. Price swings that make even penny stock traders nervous occur regularly. As of February 2, 2026, Bitcoin trades at $78.73K, with 24-hour movements of +3.32%, demonstrating the kind of daily turbulence characteristic of crypto markets. The cryptocurrency space isn’t for those seeking stable, predictable returns.

This arena demands either genuine market expertise or a willingness to accept substantial losses. If you choose to participate in what can you invest in through cryptocurrencies, do so only with capital you can genuinely afford to lose entirely. The innovation is fascinating, but the risk is equally real.

Higher-Risk, Higher-Reward Territory

For accredited investors (those with substantial income or net worth), additional options exist:

Private Equity Funds collect capital from multiple investors under professional management, then deploy it into privately held companies with the goal of helping them grow and eventually exit profitably. Returns can be attractive, but management fees are often steep, and your money typically locks up for several years or longer. Direct private equity access requires meeting specific financial thresholds.

Venture Capital follows similar principles but focuses on early-stage startups. These represent higher-risk bets on companies in their infancy, but the upside potential justifies the risk for some investors. Recent innovation — equity crowdfunding — has created limited opportunities for non-accredited investors to participate, though typically in smaller quantities.

These represent what can you invest in if you’re seeking potentially outsized returns and have both the financial capacity to endure losses and the financial sophistication to evaluate private companies.

The Insurance-Linked Option: Annuities

An annuity is a contract where you pay an insurance company a lump sum, and they promise to pay you regularly (monthly, quarterly, annually, or in one payment) either for a specified period or for the rest of your life. Variations include fixed annuities (guaranteed payments), variable annuities (payments tied to investment performance), and indexed annuities (linked to market indexes).

One advantage: tax deferral. Your earnings grow without annual tax hits until you begin withdrawals. The disadvantage: often-substantial fees that silently erode returns, plus commissions that might incentivize brokers to recommend them even when unsuitable. Approach annuities with careful scrutiny, as they’re not universally the best choice despite aggressive sales efforts.

Choosing What’s Right for Your Portfolio

So, circling back to the central question: what can you invest in? The honest answer is far more than just stocks. The spectrum ranges from ultra-safe government bonds to speculative cryptocurrency positions, with numerous intermediate options in between.

Your ideal mix depends on several factors: your risk tolerance, investment time horizon, financial goals, and how much time you want to spend managing investments. A 25-year-old with decades until retirement can weather cryptocurrency volatility that would destroy a 65-year-old’s sleep quality. Similarly, someone needing funds in three years should avoid long-lock-up private equity while someone with a 20-year horizon might welcome it.

The bottom line: understanding what can you invest in beyond stocks empowers you to build a truly diversified portfolio. Rather than betting everything on equities, you’re constructing a financial foundation using multiple asset classes, risk levels, and return profiles. Do your research thoroughly before committing capital, but know that proven alternatives exist to traditional stock market investing — and they might be exactly what your portfolio needs.