Article -> Article Details
Title | The Need For a Diversified Investment Portfolio: Non-traditional Investments |
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Category | Finance and Money --> Stock Market |
Meta Keywords | What is portfolio management services, Portfolio management services in mumbai, Features of portfolio management services, Investment Planning Services |
Owner | Karma Capital |
Description | |
To have your money work for you is a great feat. Traditional investment vehicles including stocks, bonds, mutual funds, savings accounts are the more conventional investment options known to most. These investment options give a decent return over a period of time and usually are considered safer as compared to more speculative and high risk options. However, for High Net Worth Individuals (HNIs) and Ultra HNIs, unconventional investments options can promise high returns. Diversifying your portfolio to include alternate investment vehicles such as Alternate Investment Funds (AIFs), Real Estate Investment Trusts (REITs), private equity can help attain high returns without putting all eggs in one basket. In this blog, we will look at non-traditional investment options and how exploring this side of the investing universe with the right approach can prove to be fruitful. Traditional vs Non-Traditional Investments Traditional investments offer a promise of stability and liquidity as compared to unconventional investments however they are riddled with problems like low returns on investment, high market volatility and volume. While higher volume investments can help with higher returns, to be able to tap into exponential returns, unconventional investment options can be promising. However, it would be wrong to assume that all is rosy with non-traditional investing and it comes with problems like higher risk on investment, need of specialised knowledge and expertise, lower liquidity, among others. The usual investor might not have the kind of assets or the risk appetite required to engage in such activities thereby making unconventional investments more suitable for HNIs and Ultra HNIs. Thus, it is good practice to engage in risk assessment and analysis and consult expert advisors before going ahead with a new form of investment. Why Diversifying into Non-Traditional Investments Can Be a Good Option? While traditional investments have their merits, relying solely on them can expose investors to various risks and limit their potential for long-term growth. Here are some key reasons why diversification beyond traditional investments is crucial:
Different Types of Non-Traditional Investments The following are a few non traditional investment options that you as investor can check out:
Some AIFS including Alchemy Leaders of Tomorrow Closed-Ended Fund—Series 2, ASK Golden Decade Fund, Karma Capital AIF are considered as well performing assets. Mindspace REIT, Brookfield REIT, and Embassy REIT are good options to consider. Cryptocurrencies such as Bitcoin, Ethereum as well as Tether are the go to choices for many investors. Risks and Rewards of Non-Traditional Investments However, it is pertinent to remember that investing in such vehicles can often be riddled with intricacies which you as an investor might not be aware of. This is where Karma Capital comes in and provides it’s expert services. Using portfolio management services could be a game changer for the future of your investments. At Karma Capital you also get access to expert fund managers who can help you map out the right investment strategy for your portfolio. Conclusion We are existing in a global world order which is getting increasingly borderless. With new technology revolutions like AI, non-traditional investment options are going to rise. By comprehending factors such as investment duration, market trends, liquidity, industry dynamics, and risk levels associated with each alternative, you can make informed choices that reduce overall portfolio risk and enhance returns. |