Home
IU

What are some of the benefits of alternative investments?

Alternative investments, which broadly include assets such as real estate, private equity, hedge funds, and commodities, offer a number of potential benefits to investors. These assets are typically less correlated with the stock market, which means that they can provide diversification benefits to an investment portfolio. In other words, they can help to reduce the overall volatility and risk of the portfolio, which can be particularly useful in times of market uncertainty.

One of the key benefits of alternative investments is the potential for higher returns. While the returns on alternative assets are not guaranteed and can vary widely, they have the potential to outperform traditional stocks and bonds over the long term. This is due in part to the fact that alternative assets often offer investors the opportunity to invest in less-efficient, less-crowded markets, where there may be greater opportunities for growth and value creation.

In addition to providing the potential for higher returns, alternative investments can also offer investors the opportunity to access unique investment opportunities that are not available through traditional investments. For example, investors may be able to invest in real estate projects that are not publicly traded, or in private companies that are not listed on a stock exchange. This can provide investors with access to a wider range of investment opportunities, which can help to further diversify their portfolios.

Another potential benefit of alternative investments is their ability to offer investors a degree of protection against inflation. Many alternative assets, such as real estate and commodities, have the potential to increase in value over time as the prices of goods and services rise. This can help to preserve the purchasing power of investors’ money, which can be particularly important during times of high inflation.

Overall, alternative investments can offer investors a number of potential benefits, including the potential for higher returns, access to unique investment opportunities, and protection against inflation. While these investments do come with their own set of risks, they can be an important part of a well-diversified investment portfolio.

“When a falling stock becomes a screaming buy because it cannot conceivably drop further, try to buy it thirty percent lower.” – Al Rizzo

sc name=”fma-cta”]

BLOOMBERG GLOBAL NEWS

Bloomberg video news feed with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

RBA ECONOMIC UPDATES

Periodic updates on the Australian economy, direct from the RBA, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

US FEDERAL RESERVE UPDATES

Bloomberg News focussed upon the Federal Reserve, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

FX/GLOBAL BRIEFS

Brief global updates with a focus upon currencies, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

ASX MARKET UPDATES

ASX-focussed updates, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

BLOOMBERG BRIEFS

Global briefs from Bloomberg with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED
Search pages & content: