What are Alternate Assets?

Alternate assets are financial investments that fall out of the traditional investment categories, like stocks, bonds, or cash. Examples of alternate assets include private equity, hedge funds, real property commodities, and tangible assets. Like other types of investments, alternate assets offer tax benefits and have the potential to give higher returns. Alternate assets are increasingly becoming popular in high net-worth investors’ portfolios.

Benefits of Alternate Assets

These are the reasons why individuals should consider alternate assets in their portfolios.

• Higher returns: Alternate assets often target niche and emerging markets allowing investors to take advantage of potential opportunities. As a result, the return is comparatively higher than traditional investments.
• Capital Preservation: Alternate assets like real estate and infrastructure are quite stable. They generate cash flows which play a crucial role in preserving capital during challenging times.
• Investing in unique assets: Alternate assets allow individuals to invest in promising start-up companies with high potential. It will give a chance to diversify the portfolio and maximize returns.