There are virtually limitless ways to invest your money. Most financial advisers espouse the notion that spreading your money out, or diversification of your financial resources, is the best way to go. But even then, you must choose whether you want a more aggressive, higher risk strategy, or one that allows for slower growth but more stability. Whether you choose to engage in riskier ventures is each person’s prerogative. Here are some of the popular options that are out there.

Private Equity

This is an investment strategy whereby you are entrusting some of your money as backing for a private company. There are many private equity firms, and they usually act as go-betweens for investors and the companies they wish to back. These firms raise funds from a variety of different places, both private individuals and institutional investors. When there is an IPO or similar such event, the capital is returned to you. This type of investment is certainly not for the faint of heart.

Hedge Funds

With hedge funds, you are pooling your money with others to invest in various asset types. You are putting your cash in the care of a hedge fund manager, who is generally recognized to be a financial guru knowledgeable regarding emerging markets, distressed assets, macro-trends, arbitrage, and any one of a number of other things. Like private equity investment, it has the potential to pay off big, though nothing is guaranteed.

The Self-Directed IRA

The self-directed IRA is a retirement account that is similar to a regular IRA in some respects. It’s a retirement savings account; however, it is different in the sense that it allows for some methods of alternative investment. You can invest in alternative assets with The Entrust Group’s self directed IRA, for instance. This is a good “middle of the road” option where you can try out some unconventional investing while still saving for retirement.

Venture Capital

This is a form of private equity investment where you are putting your money into early or growth-stage companies. Some firms specialize in this early-stage form of investing, and it’s critical for certain startups that wouldn’t otherwise have the capital to get off the ground. This is a risky form of investing even as compared to some of these others. Outsize returns are always a possibility, but it is equally likely that striking it rich with the company you back will never materialize.

Direct Investment in Startups and Private Companies

Instead of investing in a private equity fund, you can also invest directly in a startup or a private company. Sometimes called angel investing, this is another high-risk, high-reward strategy. Many startups fail, but if you back the right one, you can cash in. Like venture capitalism, this is a form of gambling that can pay significant dividends but can also end in disaster. The timid need not apply.

These forms of investment call for a strong constitution, and are the polar opposite of opening a simple savings account or getting a two-year CD. If you have the money and you feel strongly about one of these options, dive in, but always understand the risk that goes along with each of these choices.