Alternative investment is loosely defined by investment products other than stocks, bonds, cash, or traditional property investment. This could be art, wine, antiques, coins, stamps, or assets such as commodities, private equity, hedge funds, venture capital, and financial derivatives. Financial planner for high networth individual often recommends 10-20% of client's portfolio allocated in this category of investment for the purpose of diversification.
The pro of these investments is low correlation with traditional financial investments, which shields one from volatility which is common during turbulent times. However, the cons are relative illiquidity, limited historical and current price data, requirement of expert analysis before acquistion, and relatively high cost of entry.
In light of these, some brilliant investment experts come up with hybrid products, to be offered to exclusive investment club members. One good example is distressed real estate assets structured as rental portfolio. Not only it is shielded from turbulent times, it also provides cashflow, capital gain, as well as being backed by real properties. Financial data of this type of investment product is publicly available. To find out more financial information of distressed real estate rental properties, visit www.millhouseventures.com and click "View Properties" to download "properties detail chart".
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