About Alternative Investments
Once, exclusively the preserve of institutional and very wealthy family investors, they are now available to sophisticated investors, globally mobile high earners, entrepreneurs, and HNW individuals like you.
But, there are still some myths attached to these investment products. We explore some of these below…
Alternatives have failed to protect investors during market downturns.
During the 2008 financial crisis, alternative investment options held their own predominately. Traditional investments didn’t do so well. And now we are in yet another stage of volatility in the traditional markets.
“An intelligent asset allocation that is designed around your risk tolerance and is truly diversified is your best defense against coronavirus market volatility, and it will be your best defense against the next bout of market volatility as well.”
Only institutional and ultra-high-net-worth investors can access alternatives.
As we stated above – simply not true these days.
However, you may want to consider whether alternative investments work with your overall strategies. They may be especially appropriate for those investors with higher risk tolerance or longer time horizons, looking for appreciation and growth potential.
Investors cannot access their money if they invest in alternatives.
This is not always the case. Investors have more access to alternatives than ever before due to innovations in product structures.
Simply contact us and we can advise on investment vehicles that suit your individual needs.
Alternatives are too expensive.
Whilst you always get what you pay for the fees for alternative investments vary widely and depend on the fund’s structure. Due to the competitive market there are plenty of options for ‘value for money’ structures.
An alternative investment’s “container” usually indicates the fees an investor can expect to pay and, of course, typically entail management and performance fees.
Explore The Alternatives
As we have seen, alternative investments are sometimes met with a degree of misunderstanding.
Many people still think of alternatives as high-risk, somewhat exotic funds reserved for ultra-high-net-worth individuals and institutions. The reality is that alternative investments should be an integral part of almost every sophisticated investor’s portfolio.
Explore the world of Alternative Investments.