Although it sounds contradictory, in order to make money in a particular market it is necessary for the market to be "inefficient". That is to say it must provide better opportunities for gains than the deposit rates.

Four areas worth investigating are art and antiques, fine wines, numismatics and racehorses.

As 'art' has always been a volatile market, really good research and a high risk tolerance are required.

However, if a particular painting you have bought does not do well initially, then at least you will have had the pleasure of looking at it.

Some of the risks are obvious. Could you have been sold a fake or a copy? Could it have been stolen?

One answer would be to join an art fund, which will remove some of these risks for you.

The benefits of funds of this type are that you could buy below market price and enjoy better returns.

So what's the bottom line? There is a huge demand for art across the world and returns have been known to beat the Standard & Poors Share Index by a fair margin.

Next on the list is fine wine.

Although many of us may enjoy a good glass of wine, how do you go about making money from it?

In my youth it used to be the done thing for fathers to lay down a supply of port for their offspring. Nowadays, however, the market is much more sophisticated. A recent example shows one case being sold at Christies for £93,500.

And this is a perfect illustration of the amount of cash chasing good wine.

But, whilst I may enjoy the odd glass, I do not have any real expertise. One solution might be to have a look at Liv-Ex, an exchange where wine is traded and returns are good - about 15% pa over the last 20 years.

Annual trade amounts to $$1bn and so, whilst not huge, there is enough to make it worthy of consideration. There are also wine funds that, as an alternative, may be worth looking at. One point to note is that there is no capital gains tax to pay as wine is deemed a wasting asset. This will be especially interesting to higher rate taxpayers.

Although not everyone's cup of tea, I suppose it is the beauty and rarity of coins or numismatic that attracts investors.

Finding rare coins can mean huge profits, but it's more than likely that you'll need the advice and help of the experts.

There is one AIM-listed company, Avarae, that deals in coins for investors. There are, of course, other ways to do it, but one point to note is that the value of coins is more likely to grow in countries where the citizens are looking to repatriate coins and are prepared to pay a good price for them.

Unlike art, the risk is relatively low and, when the history behind the specific coin is taken into account, they certainly make a fascinating investment.

And last, but not least, there is the 'sport of Kings' and those most unpredictable steeds.

Racing has been likened to standing in the rain whilst tearing up £50 notes, ie both miserable and expensive in equal measure.

But if you're one of those for whom the draw of the turf is irresistible, you can always join a syndicate in order to reduce your costs.

At a minimum of £20,000 pa to keep a horse in training, that horse has got to be winning.

A better bet might be to buy and sell for breeding. A stallion with pedigree breeding can fetch up to £250,000 per mare covered. But whatever takes your fancy as a foil to the normal investment asset classes, the key to them all is plenty of research.

For an introduction to any of the more esoteric investments you can always contact me on 07715174057 or e-mail nicholaswatts@thinkpositive.co.uk.

Nicholas Watts is an independent financial planner with Positive Solutions, which is regulated by the Financial Services Authority.