Alternative investments are funds that are invested in alternative assets. Alternative assets are assets that are not included in a traditional asset class i.e. assets that do not consist of equity, debt, and cash and are therefore not listed on a stock exchange.
Investors invest in alternative assets for three main reasons:
Diversification: This system provides the opportunity to diversify your portfolio from traditional asset classes to products related to stocks and debt.
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High return potential: Most systems inform previous investors in the system prospectus and in the system presentation that they are aiming for high returns.
Reduced Risk: The system has a risk management process and an experienced fund management team to manage and reduce portfolio risk (details are usually provided in the system presentation and prospectus).
Real estate funds – You invest in a variety of real estate projects, both commercial and personal. You can invest in a specific group of cities or anywhere in India. These funds usually have relationships with established real estate developers and construction companies to invest in such projects.
They also have extensive internal review, risk assessment, and monitoring functions, either with internal expert teams and/or with external agencies to provide these services.
They also have extensive internal review, risk assessment, and monitoring functions, either with internal expert teams and/or with external agencies to provide these services. You can even search online for more information about alternative investments.