Financial markets have been so volatile recently, forcing investors to look for safer means of investing their money be it for short medium or long term.
Alternative investments are products away from the three common asset classes of stocks, bonds, and cash. Alternative investments include private equity, hedge funds,venture capital, real estate investment trusts and commodities. It also includes real assets such as work of art, precious metals, rare coins or even wine. Their performances in the market do not depend on the performance of stocks and bonds and thus can be deemed difficult to value.
An Alternative Investment, however, is available as a choice for fewer accredited investors. It requires high minimum investment which restricts it to a lower number of accredited high-net-worth individuals and institutional investors. Legislation have not been formulated to enable open alternative investments to common individuals and retail markets. The unregulated nature of this asset class sadly makes the investment prone to investment scams and fraud, necessitating extensive due diligence before making any transaction. This unique nature of assets also makes them difficult to value and have low liquidity compared to other conventional assets.
Financial exchange market has been the best option for most investors due to its high returns and high liquidity. A young investor with low capital can also be part of the trade; there is no restriction like the case of alternative investments. Lack of a central marketplace makes Forex trading immune to manipulation eliminating cases of investment scams and frauds. An investor can also make a profit with any market condition, be it bullish or bearish markets, trading all day five days a week on all markets. Despite market volatility, Forex trading is still a good profit generating investment option.
Managed Forex Account
Forex trading can be a headache, especially for young inexperienced investors. One has to spend time and resources analyzing news, trying every strategy and monitoring markets to avoid being caught off guard. Foreign exchange markets are extremely volatile;one has to keep studying signals and trends. It is time-consuming and challenging for a private investor to keep up. A Managed Forex account or better still – A managed Forex investment Fund eases this pressure by allowing investors the flexibility to take a hands-off approach and leave the market-watching to someone else. With managed Forex account, you have a guarantee of professional trading and management of funds for high returns while you still have clarity and track your performance.
Alternative Investment for Diversification
As pointed out above, alternative investments have an extremely low correlation to other assets like foreign trading. They, therefore, offer an opportunity for portfolio diversification. An investor can put his money in Forex accounts at the same time in alternative investments like private equity or hedge funds. Forex accounts can offer liquidity, high returns and safety options for an investor. Alternative investments have high initial upfront investment, but due to low levels of turnover, have low transaction costs. They also have long-term benefits in terms of returns as well as tax benefits. Investments held more than 12 months enjoy lower capital gains tax as compared to short-term investments.
Having a managed Forex account combined with an alternative investment can be a good investment portfolio. A Managed Forex account ensures that you do not engage all your efforts in trading, letting an expert do the job for you while you exercise control over your funds. Managed Forex account can serve as a short-term investment while an alternative investment can secure the long-term options.
If you would like to learn more about how a Managed Forex investment Fund is the most diverse performing product in the current market in our opinion, please feel free to leave us a message or contact us and we will happily explain the benefits with no obligation!
https://invest2forex.com/wp-content/uploads/2018/12/pexels-photo-955447.jpeg401640Mike Fhttps://invest2forex.com/wp-content/uploads/2018/12/Logo-300x197.pngMike F2018-12-14 11:57:232018-12-14 11:58:37What are Alternative Investments?