Category: Finance, Real Estate.
If you are looking at alternative investments the one we consider the best has an average gain of 920% over 20 years and has outperformed shares and property with less downside risk.
Alternative Investments What Are They? If you haven t guessed what it is, read on! The term alternative investments typically refers to hedge funds, high return mutual, private equity investing funds and a variety of non- traditional asset investments such as land, art, timber, precious metals and a variety of other collectables. The addition of alternative investments to a portfolio of traditional investments can not only enhance overall portfolio returns, but also help reduce downside swings and losses. Alternative Investments- Reduce Risk and Increase Long Term Performance! Portfolio Diversification. Low Correlation.
The concept of not putting all your eggs in one basket when investing, and spreading the risk is not a new concept- Harry Markowtiz reduced it to a mathematical formula in 195 Today, his work remains a major influence on both asset managers and investors when considering the overall make up of an investment portfolio. Markowitz worked on the assumption that all investors what to avoid risk if possible. The definition of this is" correlation, " and measures how much an investor can expect different investments or asset classes to change in price relative to each other. He considered how ALL the different investments in a portfolio can be expected to move relative to each other and how this affects the overall risk/ return of the portfolio. Attractive Rates of Return. A selection of shares for example, will probably all go down together in a bear market. If you choose the right alternative investment, then it will not only help reduce the risk of your portfolio, but can help provide better overall returns because some investments are correlated and move together.
However, other assets may actually rise. What is the Best Alternative Investment? An investor should therefore combine a number of non- correlated investments to balance the risk and reward of the portfolio. UK land is an ideal alternative investment to add to your portfolio- the reason for this is: Its historical performance, not only has shown good growth, but downside risk has been relatively low. Land Prices Rising Strongly Creates an Investment Opportunity UK land has on average risen in value by 920% over 20 years. Land has also produced solid long term gains regardless of whether stocks, equities and mutual have been rising or falling.
This represents the average, and investors who have been careful in their plot selection have made far greater gains. There is a need for new homes to be built and land developed. The UK is one of the most densely populated countries in Europe and has a rising population, combined with a severe housing shortage. You can make significant gains by buying land that could get planning permission in the future. You don t need to be wealthy to consider land as one of your alternative investments and even the smallest investor can take advantage of this opportunity. Alternative Investments are not Just for the Rich! Many specialist companies will help you select land that has a high potential to rise in value.
They will do the research and give you all the facts you need, to make an informed investment decision.
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