WHAT IS AN ALTERNATIVE INVESTMENT?

What is an Alternative Investment?

An alternative investment is an investment that is not traditional or typical and don't fall under the traditional asset classes of stocks, bonds or cash, but do include both tangible and financial assets.

Its definition is quite broad and can include assets such as art, precious metals, real estate, commodities, private equity, venture capital and cryptocurrencies. Alternative investments are not traded publicly in structured markets (e.g. ASX), but can be accessed privately, through retail, sophisticated and wholesale investment opportunities (wealth managers and hedge funds amongst others).

They typically have a low correlation with traditional investments, making them ideal for portfolio diversification and reducing investment risk. A strong long-term strategy will typically generate higher rates of return with alternative investments. Some wealth professionals suggest allocating 15-20% of your portfolio to alternatives. *

WHY SHOULD I DEIVERSIFY MY INVESTMENT PORTFOLIO TO INCLUDE ALTERNATIVE ASSET CLASSES?

They typically have a low correlation with traditional investments, making them ideal for portfolio diversification and reducing investment risk. A strong long-term strategy will typically generate higher rates of return with alternative investments

EARN YOUR TIME BACK

Creating a passive income is the ultimate goal of every investment plan and how you can secure your financial future and impact your lifestyle today. If your goal is to invest to make money then you should be investing in businesses that make you money! Sounds simple, but what holds people back is not knowing how to manage a business, what type of business to invest in or how to set up a business.

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*According to Wealth Professionals

Shaun Fox is an Authorised Representative (No. 001281190) of Investors Exchange Limited, ACN 116 489 420 (AFSL 299024)