Alternatives investments were once the exclusive domain of institutional investors, but today alts have become more accessible. They have gained popularity in large part because they promise diversification beyond traditional stocks and bonds. There is not a standard, industry-wide definition as to what can be categorized as an “alternative investment”, however, one common category they can be put into is that they are a non-traditional or beyond traditional forms of investment, i.e., anything other than stocks, bonds and cash like private equity, venture capital, real estate, commodities, hedge funds, music royalties, litigation finance, merger arbitrage, global infrastructure and more. Research suggests that today, there are more alternatives to choose from than ever before.
A recent Preqin study established that Middle East based private capital investor landscape was dominated by sovereign wealth funds, and account for 48% of the assets under management (AUM) in alternatives. Adding alternatives can help you to navigate through market cycles as it uses sophisticated tools and techniques, seeks to deliver returns over the long term and provides a significant diversification to your portfolio. Some of the most popular alternative investment products are Real Estate Investment Trusts (REITs), art, crypto-currencies, precious metals, limited partnerships, and other international investments. With the future of alternatives being promising, how to begin considering alternate investments for your portfolio?
One of the standout features of Hedonova is its commitment to democratizing alternative investments. Previously considered exclusive, Hedonova has made it possible for individuals to start investing in alternative assets with a minimum investment of just $5,000. This reduced entry barrier allows investors to explore and benefit from the advantages of alternative investments without needing substantial capital. Moreover, it can empower you to diversify your investment portfolio with the assurance of the professional experts conducting thorough due diligence and risk assessments on the alternative assets.
As an innovative and premier investment firm, Hedonova, with its minimum investment of just $5,000, opens the elite doors of alternative asset classes. We recommend beginning by conducting thorough research on various alternative investment options, create an account with Hedonova, and customize your portfolio based on your risk appetite and investment goals. Our expertise in profile management can prove extremely beneficial and grant you access to unique investment opportunities. We also prioritize transparency by providing comprehensive reporting and regular updates on the performance of the investor’s investments, enabling you to make informed decisions and optimal management of your diversified investment portfolio.
Remember, a single alternative fund or strategy may not provide the level of diversification you are looking for. Therefore, many financial professionals currently recommend devoting a range of -10-20% of your overall portfolio to alternatives, among which too, they suggest investment in different types of alternative asset classes. Hedonova’s One Fund Portfolio offers an exclusive investment opportunity where we simplify the investment process by combining multiple alternative assets into a single diversified fund, reducing the need for individual asset selection and portfolio management, along with a fairly distributed risk.
Essentially, alternatives investments are of two types, Return Seekers, or Risk Managers. Return Seekers may help boost performance by opening new opportunities for investment and Risk Managers may help smooth performance when markets become rough. Through Hedonova’s One Fund Portfolio, we strive to add a blend of return seekers and risk managers to alternate assets selection, ultimately helping you achieve a better balance of risk and return.
In a November 2022 wealth and asset management report by EY about alternate investments, private credit was identified as the largest expected beneficiary by majority investors, as many of them believe that this period of rising interest rates and deteriorating economic conditions will create a credit cycle that allows for interesting and lucrative investment opportunities in this space. Most investors expect to either hold or increase allocations in alternative asset classes. With a low correlation to stock and bond markets, alternative investments will help mitigate overall portfolio volatility and have a potential to generate attractive returns. In this landscape of diversification and alternative investment access, Hedonova presents an opportunity for individuals to enter this space. More private investors can now explore alternative asset classes and unlock new financial growth prospects.
Embrace the possibilities of alternative investments with Hedonova and embark on a path towards a diversified and rewarding investment portfolio.
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