Alternative investments generally have a higher minimum investment requirement compared to traditional investments. They are also less liquid. However, alternative investments can be very lucrative for investors, and may even turn a profit during down markets.
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| Image source: entrepreneur.com |
Let’s take a look at some of the more popular alternative investments for high net worth individuals in the world today.
Real estate
Real estate is probably the most well-known of all the alternative investments. It is also both dependable and profitable. A lot of developers who started out in real estate back in the middle of the 20th century are now multi-millionaires. There are however, a lot of bases to cover and principles to study before going all-in in real estate, but once an investor hits his stride, it can be extremely lucrative.
Managed futures
Managed futures are indeed for the high net worth. What happens with managed futures is that funds and assets are handled by managers (sometimes firms for entire families), and are invested in different businesses. Managed futures are sensibly considered because people aren’t confident in their own business acumen. High net worth individuals then rely on and trust fund managers to make the right decisions. As such, becoming a fund manager takes a lot of accreditation, and only the best are trusted.
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| Image source: 3dprintingstocks.com |
Scott Tominaga is the Chief Operating Officer of PartnersAdmin LLC. He has almost two decades of experience in the hedge fund and financial services industry. His company was established in 2008 with the intent to provide quality, outsourced solution to the dynamic back office needs of alternative fund industry. To know more about Scott and PartnersAdmin LLC, click here.
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