Alternative Investments
There are two main types of alternative investments: the first consists of vehicles that invest in non-traditional assets, such as real estate and private equity. The second involves strategies that invest in traditional assets through the use of non-traditional methods, such as short selling and leverage.
And what is the added value of alternative investments?
Here are some highlights:
Broadened diversification: Alternative investments can offer a wide range of asset classes that are uncorrelated to traditional markets, helping to diversify the risk of a portfolio. This can be especially useful during periods of market volatility.
Attractive returns: Alternative real estate investments can offer consistent returns, even in volatile economic environments. Strategies such as project development or commercial real estate investments can generate stable cash flows and attractive returns over time.
Access to exclusive opportunities: Alternative investments provide access to investment opportunities that are not available to the average investor. In real estate, these opportunities may include the development of large-scale projects, the acquisition of high-value properties or investment in emerging markets.
Inflation protection: some alternative investments, such as real estate and infrastructure, tend to have a return that is correlated to inflation, which can help protect the purchasing power of the investment during periods of rising prices.
Customization and flexibility: Alternative investment strategies tend to be more flexible and can be tailored to the specific objectives of investors. In Real Estate there is a wide range of options, and this allows tailoring an investment portfolio according to investment objectives and risk tolerance, providing greater personalization and control over investments.
Active management and value: Many alternative investments involve active management by experienced professionals who seek to identify and capitalize on market opportunities. This generates added value through informed decisions and sophisticated investment tactics.