Asset management can help you grow your wealth and protect your investments, and may incorporate alternative investments. But what are alternative investments, and should they be a part of your portfolio?
We have a strong background in asset management and planning, so we know exactly what to look for when choosing investment opportunities.
Alternative investments are financial assets that do not match conventional asset categories. Conventional assets include stocks, bonds, and cash, whereas alternative investments include hedge funds, private equity, managed futures, art, etc.
Alternative investments can be extremely lucrative, but they also come with risks. Before you invest in alternative investments, make sure that you understand what they entail and how they can help you grow your wealth.
While asset management may include alternative investments, asset management is not the same as investing in alternative assets.
Hedge funds may be made up of shares in companies, or they may use other asset classes as well, along with derivatives contracts.
Hedge funds are typically much less liquid than other asset classes because they are not traded on exchanges, but they can deliver tremendous rewards as part of a diversified portfolio.
This asset class refers to private businesses or funds that provide capital for private companies in exchange for equity in the company.
Unlike project financing, private equity provides long-term financial support instead of short-term loans.
This asset class refers to investment portfolios based on commodity futures, options, swaps contracts, and other derivatives.
The goal of managed futures is to eliminate market risk for the investor by using various strategies to limit exposure or counterbalance it with asset classes that have low correlation.
These include real estate, precious metals, art and antiques, and collectibles.
Alternative asset classes can be incredibly beneficial to your asset management goals as long as you make sure they fit in with the rest of your plan. Our financial services professionals can help you understand how alternative investments fit into your portfolio and what risks you need to consider even before those risks develop.
Always keep in mind that asset management is a crucial part of your financial goals. If you want to ensure that all of your asset classes are giving you the best possible results, contact us today for more information on asset management and alternative investments.
