Alternative Investments Gaining Popularity among Investors
As investments results were reported from some of the major endowment investors across America, alternative investments are gaining a lot of popularity among investors.
When
the average investor hears terminology including hedge funds, private
equity and derivatives, the most common misconception is that
alternative investment are really meant only for the clients who have an
extremely high net worth.
It’s
true that these investments are more sophisticated in general than
regular investments. Investors need to make sure their risk tolerance,
time frame, and overall financial suitability are line with any
suggested alternative-investment idea.
However,
there is a bevy of mutual funds and exchange traded funds that are
offered at fairly low minimums today in investment arenas such as
commodities, currencies, managed futures, and absolute return/hedge
funds for the regular retail investor. Remember, that for alternatives
to have a real effect on your portfolio, you might be looking at more
than a small percentage of a portfolio allocated to these various
positions, again based on your personal situation and suitability.
Source: Wall Street Journal
