In this comparison of alternative investment platforms Masterworks vs Yieldstreet, we’ll delve into their background, costs, trustworthiness, as well as advantages and disadvantages.
As you will see, both platforms serve investors looking for alternative investments, but their structures and areas of focus are very different.
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Masterworks vs Yieldstreet
What is Masterworks?
Investment platform Masterworks was rolled out in 2017 to make investing into valuable modern art accessible to individuals through acquisitions of fractional shares.
The provider specializes in high-end pieces by well-known painters including Banksy, Picasso, and Basquiat.
By allowing regular investors to diversify their baskets with art that has traditionally outperformed more conventional asset classes like the S&P 500, the platform aims to provide easier access to the art market.
Investments are usually held for three to ten years.
Another key comparison point in Masterworks vs Yieldstreet is the cost of entry. The minimum to invest is usually roughly $15,000 for the former.
Masterworks Fees
The platform levies a 1.5% annual management charge plus a 20% commission on profits when artworks are sold.
Is Masterworks legit?
Yes, it is regarded as a legitimate site for investing that has earned high marks, including an A+ from the Better Business Bureau.
This suggests a solid track record for both company practices and customer service.
Masterworks Pros and Cons
Historically, most investors have not been able to invest in premium modern art, but Masterworks offers chances to do so.
The mobile app and website are made to be user-friendly.
According to the platform, the value of contemporary art has increased more quickly than that of conventional assets like stocks.
There have been various criticisms about its transparency and pricing schedule.
Although it is not categorized as a fraud, some have expressed worry about the high fees and possible risks of art investments.
It is legitimate, but Masterworks might not be appropriate for all investors particularly those who are risk-sensitive.
Liquidity is also a crucial consideration for those choosing between Masterworks vs Yieldstreet. Investing can be less liquid vs other assets like in the case of Masterworks where investments are linked to artwork sales, and they may take years.
What is Yieldstreet?
Art, real estate, maritime finance, and legal finance are just a few of the asset sectors that can be accessed through this more comprehensive alternative investing platform.
Its main goal is to provide structured investments to accredited investors who want more diversification than just conventional equities and bonds.
Generally, minimum investment amounts are $10,000 or more. But for assets in their Prism Fund, they provide a cheaper option at $2,500. These funds are available to non-accredited investors.
Who owns Yieldstreet?
Yieldstreet was established by Milind Mehere and Michael Weisz in 2015.
Is Yieldstreet legit?
It is also recognized as an authentic platform that has made a name for itself in the alternative investing market and earned praise for the products it offers.
Despite not being as well-known as Masterworks in terms of user ratings, the platform’s authenticity is bolstered by its adherence to regulatory requirements.
Yieldstreet Fees
The platform assesses yearly management fees of 0% to 4%, based on the exact investment or fund type selected.
Is Yieldstreet a good investment?
Investors can diversify across a range of asset types thanks to the platform.
Yieldstreet mainly serves accredited investors, offering them special opportunities that might not be accessible elsewhere.
Fees for some offers may be lower, but others may reach 4% or more.
Yieldstreet does not provide instant liquidity for many of its assets.
Investing in asset classes with less regulation carries inherent risks that could lead to unexpected performance, just like any other alternative investment platform.
Its investment choices are risky and could result in significant losses.
It allows investors to diversify across various asset classes.
Yieldstreet caters primarily to accredited investors, providing them with unique opportunities that may not be available through traditional investment channels
While some offerings may have lower fees, others can go up to at least 4%.
Many investments on Yieldstreet do not offer immediate liquidity.
As with any alternative investment platform, there are inherent risks associated with investing in less regulated asset classes, which may not perform as expected.
Its investment options may pose high risks with the potential for large losses.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
