Alternative Investment Products

Money management isn’t only about smart savings, paying bills on time, and prioritizing budgets. It’s also about investing wisely and watching your money grow. But investing can be intimidating, especially with so many options available today. Traditional investments, such as stocks, bonds and mutual funds, are excellent for those just getting started; but many savvy investors are exploring different options, namely alternative investment products.

What Are Alternative Investment Products?

Alternative investment products are any investments that doesn’t fall in the realm “traditional” securities (stocks, bonds or mutual funds). Previously exclusive to only those with large amounts of capital, alternative investments are now within reach for most investors today.

For those looking to diversify their portfolio and achieve higher returns, these investments are worth consideration. However, it’s important to note that alternative investment products aren’t for everyone. Due to the complexity and diversity of investments available, as well as the unique regulations associated with each option, it’s important to understand the market well before diving in.

Hudson Point Capital can help you avoid costly mistakes by explaining your options for a diversified portfolio. Call us at 732-321-5244 today to learn more.

5 Common Alternative Investment Products for Your Portfolio

Alternative investment products can provide outsized returns. Here are five different types you could explore to diversify your portfolio:

Private Equity

Private equity is a broad term encompassing ownership interest in a company or portion of a company that is not publicly owned, quoted or traded on a stock exchange. Compared to public equity, long-term outcomes of private equity investments are less dependent on market performance overall. Private equity investments will generally be made by a private equity firm, a venture capital firm or an angel investor.

Venture Capital

As a subset of private equity, investors have the opportunity to get in on the ground floor of a startup or help a small business expand through venture capital investing. It can be a risky asset class, but has the potential to produce outsized returns. For example, some famous start-ups such as Google, Twitter and Facebook resulted in significant returns for early venture capital investors.

Real Assets

Real assets are physical assets that have intrinsic value due to their substance and properties. Real estate, oil, agriculture land, precious metals, commodities and luxury goods all fall into this category. Other examples include collectables, wine and art. If you’re looking to make a long-term investment, you can buy now and sell for a profit in the future.

Real Estate

As a subset of real assets, investing in commercial or residential real estate can be a profitable short-term or long-term investment strategy. Historically, real estate investments have had a low performance correlation with stocks and bonds and have provided competitive returns relative to other asset classes. This makes them an optimal choice for investors looking to diversify their portfolio.

Hedge Funds

Only available to sophisticated investors, such as institutions and individuals with significant assets., hedge funds offer a more aggressive investment approach. This strategy works similar to a mutual fund (pooled investments formed to invest in a variety of securities and other asset types) and bring high returns on investment. U.S. laws do require that hedge fund investors be “accredited,” which means they must earn a minimum annual income, have a net worth of more than $1 million.

Expand Your Portfolio with Alternative Investment Products

No matter the size of your investment, Hudson Point can help you identify risks in your current portfolio and strategize new ways to mitigate those risks through alternative investment products. Contact us today at 732-321-5244 to learn more.