- Alternative investments are instruments outside stocks, bonds and deposits, usually with lower liquidity.
- Main risks: liquidity, project risk, provider transparency and concentration.
- Start small and gradually, once your emergency fund and core investments are in place.
When people talk about investing, they usually picture stocks, mutual funds, bonds and deposits. There is another group often called alternative investments: instruments outside those conventional assets, with different risk, liquidity and sources of return.
What counts as an alternative investment?
- Project or transaction financing such as bridge financing, where capital goes into a specific, verifiable event.
- Platform-based financing such as OJK-regulated P2P lending.
- Protected funds and RDPT, structured products with their own rules.
- Property and real assets that are not traded daily.
- Private company equity, including minority stakes.
This list is not exhaustive and each has different rules and risks. What they share: they are not sold on an exchange every day, so the money tends to be harder to withdraw at short notice.
Why do investors look at alternatives?
The most common reason is to diversify sources of return. Exchange-traded assets tend to move together with market sentiment, while the return on alternatives is driven more by the performance of the transaction or business being funded. Some investors also like the clarity: knowing exactly what is funded and when it is expected to finish.
Risks to understand from the start
- Liquidity: money is usually tied up until the transaction ends.
- Project or business risk: results depend on whether what is funded succeeds.
- Transparency: not every provider opens up how they screen and verify.
- Concentration: putting too much into one transaction magnifies the impact of a problem.
That is why judging the provider matters as much as choosing the instrument. Five things worth checking are covered in how to choose a safe project funding platform.
How to start gradually
A sensible step for beginners is to make sure the emergency fund and core investments are in place, then put a small portion into alternatives and learn from the first experience. The right share is very personal; we deliberately do not give a fixed number, and the reason is explained in portfolio diversification into alternative investments.
If you want to compare the two alternatives people ask about most, read bridge financing vs RDPT and bridge financing vs P2P lending. To see how Melton Bridge structures transactions, visit the How It Works page. This article is general education, not investment advice.
Frequently asked questions
Are alternative investments supervised by OJK?
It depends on the instrument. Some, such as P2P lending and capital market products, are under OJK supervision, while other forms have different frameworks. Check the provider's status and licences before placing funds.
What share of a portfolio should go into alternatives?
It is highly personal and depends on your risk tolerance and liquidity needs. We deliberately give no fixed number; consult a licensed financial planner.
What is the biggest risk of alternative investments?
Usually low liquidity and the risk of the project or business being funded. That is why diversification and understanding how the instrument works are essential.
Ready to deploy capital?
Register as a fund owner, set your mandate, and review diligence packs on screened bridge transactions before you commit.
Educational content only, not financial advice. Returns are not guaranteed and capital may be lost.