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We provide you with a variety of non-traditional assets to invest in; such as private equity, hedge funds, commodities, collectibles and litigation funding.
Alternative investments encompass a diverse range of asset classes not associated with stocks, bonds and cash. They explore opportunities outside this framework and typically include assets such as private equity, hedge funds, real estate, commodities and cryptocurrencies. There has also been a growing interest in tangible assets like art, collectibles and memorabilia.
As an investor, one of the main reasons for you to turn to various types of alternative investments is the diversification of your portfolio. This is because alternative investments tend to have a low correlation with traditional markets – i.e. they don’t always move in the same direction as equity and bond markets.
Alternative investments span a much wider range than traditional investments, catering to many different needs and interests. Listed are just a few different types of alternative investments available to investors like yourself, looking to diversify your investment portfolio. Other methods include private debt, farmland, litigation funding, and peer-to-peer lending.
Private equity investment involves investing directly in private companies that are not listed in stock markets. It encompasses venture capital, growth capital, and buyouts.
Hedge funds are pooled investment funds that use a number of strategies to earn active returns for the investors in any given investment pool. The aim is to invest in a wide range of assets to generate the highest possible returns through leverage, derivatives and short selling.
Real estate investment is one of the most reliable asset classes to diversify your portfolio. Your property investment could generate passive income for you in the form of rental yield or in the form of capital appreciation over time.
Commodities are physical assets such as: metals like gold and silver; agricultural products like grains, sugar and coffee; and energy resources like oil and gas products.
This alternative investment category includes investments in physical items like art, antiques, wine, collectibles (rare watches or classic cars, for example), memorabilia (such as Darth Vader’s helmet from the Star Wars movie The Empire Strikes Back) and rare coins.
Cryptocurrencies are a 21st century digital asset class. Such currencies don’t have physical denominations. These are digital assets created based on blockchain technology. Some investors profit from price appreciation. Others stake their cryptocurrencies to generate passive income.
Alternative investments offer you several benefits. A major advantage is that, unlike traditional investments, you have some unique opportunities. For example, you could invest in an exciting passion project; or be part of an innovative tech venture. In addition to that, the most significant benefits of alternative investments are:
Alternative investments are broad and every asset class has its own process. Buying land is different to buying Bitcoin, and buying equity is largely different from purchasing art. In most cases though, investing in alternative investments requires specialist knowledge.
If you are considering alternative investments, it’s crucial to do thorough research or consult your MHG Wealth financial advisor to understand the specific opportunities and risks involved. We are here to help you explore these opportunities and integrate them into your broader investment strategy.
For a private consultation, please contact us to schedule a call.
Begin your journey to a secure financial future by reaching out to MHG Wealth Management today.
Alternative investments can offer higher returns and lower correlation with traditional stocks and bonds, enhancing portfolio diversification. They also provide opportunities to invest in unique assets that may not be accessible through conventional investment channels.
The tax implications of alternative investments can vary widely, often involving higher tax rates on short-term gains, potential tax benefits from depreciation in real assets, and complex reporting requirements. At MHG Wealth, our advisors will help you understand the specific tax obligations and strategies for minimising tax liability related to your alternative investments.
Alternative investments are good for diversifying your portfolio and potentially achieving higher returns, especially if you have a high risk tolerance and a longer investment horizon. However, they can also come with higher risks and complexity. It’s therefore important to carefully assess your financial goals and consult with a financial advisor before investing.
MHG Wealth is an Appointed Representative of Lawsons Network AG, Company No. CHE-394.490.386, Rue Neuve-du-Molard 19, 1204 Genève, Switzerland. Lawsons Network AG is registered as an Insurance Intermediary with the Swiss Financial Market Supervisory Authority (FINMA – 37795), a member of the Client Advisors register at Association Romande des Intermédiaires Financiers (ARIF – 32974) and affiliated to Organisme de Surveillance pour Intermédiares Financiers & Trustees (SO-FIT) as an SRO – Affiliate No. 1202. Lawsons Network is also proud to have partnerships in the EU, UAE and is affiliated in the USA.
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