People usually consider investment as putting their money into stocks or bonds. What if you can find ways to invest in assets other than the traditional ones? Yes, you can go for alternative investment. It generally includes venture capital, private equity, hedge funds, real estate investment funds, commodities and real assets such as metals, coins and art. These usually perform in low correlation to stocks and bonds. Needless to say, these investments tend to behave differently that the traditional stock and bond investment and thus it is a great idea to add them to your portfolio for a risk free investment along with enhanced returns.
However, there are many misunderstandings that surround these alternative investments and some still consider it high risk. Now, it is high time to unveil these myths:
Alternative investments are more volatile than stocks and bonds
Fact: While some alternative investments can experience higher levels of volatility than traditional stocks and bonds, as a group, they are no more volatile than any other investment. Many investors experience far less volatility than the stock market.
Investing in one alternative fund will diversify the portfolio
Fact: The fact is that investing in only one alternative asset can provide some diversification benefits but it will include some risk.
You cannot access your money if you invest in alternative
Fact: The liquidity of the alternative investment generally depends on the individual investment. Some even provide daily access to your cash while the limited partnerships have restrictions from 30 days to longer than 10 years.
Alternatives are a bit expensive
Fact: The fees for alternatives can be higher than that of traditional investment; however, it can be justified if they provide access to return streams that offer a benefit.
Looking for a trustworthy dealer of alternative investments?
I2Investments.com is the best place to go. It directly deals in alternative investment classes that include FX, Gold, Oil, BitCoin and alternatives. If you are trading with this firm, your funds will be traded with the leading banks in the world to achieve the highest trading returns possible.
Why this firm prefers alternative investment?
Due to global financial crisis, the markets are becoming more and more dangerous with each passing year. Moreover, largest inflows have been observed in long/short, market-neutral, commodity, and currency funds.
What this firm does for you?
This firm makes use of state of art technology that allows the currency and commodity trades to be copied directly to the funds that you invest with it.