Struggling For Portfolio Diversification? 7 Alternative Investment Strategies Accredited Investors Use in 2026

Let's be real, sticking with just stocks and bonds isn't cutting it anymore. If you're an accredited investor watching your portfolio get tossed around by market volatility, you're probably wondering what the smart money is doing differently.

Here's the thing: nine out of ten financial advisors are now allocating to alternative investments, and about half are putting over 10% of portfolios into these asset classes. Why? Because traditional 60/40 portfolios aren't delivering the diversification they used to.

At Mogul Strategies, we help investors blend traditional assets with innovative strategies that actually move the needle. Here are seven alternative investment strategies that accredited investors are using right now to build more resilient portfolios.

1. Private Credit: The Fixed-Income Alternative

Private credit is essentially lending money directly to companies outside the traditional banking system. Think of it as being the bank, but with better returns.

The appeal is straightforward: you're getting yields between 8-12% in an environment where traditional bonds might barely keep pace with inflation. These higher interest rates compensate you for the illiquidity and additional risk, but they also provide real diversification to your fixed-income allocation.

Private credit works particularly well when traditional credit markets tighten. Companies still need capital, and if banks aren't lending, private credit steps in. The key is working with experienced managers who know how to structure deals and assess credit risk properly.

2. Real Estate Syndications & REITs: Cash Flow Plus Appreciation

Real estate has always been a diversification staple, but how you access it matters.

Multifamily syndications pool capital from accredited investors to buy apartment communities. You're not managing tenants or fixing toilets, professional operators handle everything while you collect distributions. These deals typically target 8-12% returns through a combination of monthly cash flow and eventual property appreciation.

The beauty of multifamily? People always need a place to live. Economic cycles come and go, but rental demand stays relatively stable, especially in growing markets.

If you want more liquidity, REITs offer exposure to commercial real estate portfolios without locking up your capital for years. You can buy them through any major brokerage, and they trade like stocks. The trade-off is you're giving up some return potential for that liquidity.

At Mogul Strategies, we look at real estate as a core portfolio stabilizer, something that generates income while traditional markets do their thing.

3. Venture Capital: High Risk, Higher Upside

Venture capital is the opposite of boring, and that's exactly the point.

You're investing in early-stage companies with massive growth potential. The catch? Most will fail. But the ones that succeed can return 50x, 100x, or more. That's why VC returns follow a power-law distribution: a small number of winners generate the majority of portfolio returns.

Expected returns often exceed 20%, but you need to be comfortable with:

• Long timelines (8-12 years)

• Significant risk of capital loss

• Zero liquidity until an exit event

This isn't for everyone, but if you can allocate 5-10% of your portfolio to high-risk, high-reward opportunities, venture capital provides exposure to innovation and disruption that public markets can't match.

4. Hedge Funds: Sophisticated Strategy Access

Hedge funds get a bad rap sometimes, but the top-tier ones offer something valuable: strategies that aren't correlated with traditional markets.

These funds employ advanced techniques, macro trading, quantitative models, long/short equity, multi-strategy approaches, designed to generate returns regardless of what the S&P 500 is doing. Yes, fees are higher (typically 2% management plus 20% performance), but you're paying for specialized expertise and true diversification.

The key word there is "true." Most investors think they're diversified because they own different stocks or sectors. But if everything drops when the market crashes, you're not really diversified. Quality hedge funds can provide non-correlated returns that smooth out portfolio volatility.

5. Fine Art: Culture Meets Capital

Fine art isn't just for museum walls anymore. It's become a legitimate alternative asset class that moves independently from traditional markets.

Investing in art requires research and understanding of specific market dynamics: which artists are appreciating, which movements are gaining traction, how authentication works. Platforms have emerged that allow fractional ownership, making this asset class more accessible than ever.

The correlation with stocks and bonds is low, which makes art attractive from a pure diversification standpoint. Plus, you get to enjoy the aesthetic value while you wait for appreciation.

6. Collectibles: Wine, Whiskey & Precious Metals

This category might sound exotic, but these assets have real diversification benefits.

Wine and whiskey enjoy low correlation with traditional assets. A stock market crash doesn't make your bottle of vintage Bordeaux worth less. These investments require knowledge of specific markets, proper storage, and patience, but they've proven resilient to equity market volatility.

Precious metals like gold and silver serve a different purpose: they're often seen as stores of value during economic uncertainty. You can access them through physical ownership, ETFs, or gold-backed investment products. They typically make up 5-10% of diversified portfolios as an insurance policy against currency devaluation or systemic risk.

7. Cryptocurrencies: Digital Assets Come of Age

Love them or hate them, cryptocurrencies are here to stay. Bitcoin and Ethereum have matured from fringe experiments to legitimate portfolio components.

Crypto allocation is typically suitable for aggressive investors willing to accept volatility. We're not talking about gambling on obscure tokens: institutional investors are focusing on established cryptocurrencies with real utility and adoption.

At Mogul Strategies, we believe in blending traditional strategies with digital innovation. That means treating crypto as a small but potentially transformative allocation rather than an all-or-nothing bet.

How Much Should You Allocate?

Your alternative investment allocation depends entirely on your risk tolerance:

• Conservative investors: 5-10% to alternatives

• Balanced investors: 15-20% to alternatives

• Aggressive investors: 25-30% or more to alternatives

The key is balance. Effective diversification blends income-oriented vehicles (private credit), long-term equity positions (real estate or venture capital), and liquid assets (REITs or crypto) to manage both risk and cash flow.

Don't just rely on best-case projections either. Stress-test your assumptions by modeling what happens during tougher market conditions. What if interest rates spike? What if there's a prolonged recession? Your allocation should work across multiple scenarios.

Putting It All Together

Alternative investments aren't a magic bullet, but they're tools that sophisticated investors use to build more resilient portfolios. The goal isn't to chase the highest returns: it's to construct a portfolio that can weather different economic environments while still growing your wealth.

At Mogul Strategies, we specialize in helping accredited and institutional investors navigate these opportunities. We combine institutional-grade analysis with innovative strategies to create portfolios that actually work in the real world.

The question isn't whether you should consider alternatives. It's which ones make sense for your specific situation and how to implement them properly. That's where having an experienced partner makes all the difference.