What are the best alternative assets?
Art, wine, jewelry, classic cars… These are the alternative assets affluent investors often buy when they want to diversify their holdings and have some fun collecting beautiful objects.
What should I invest in 2021?
The Best Investments in 2021
Experts recommend low-cost, diversified index funds. These are funds with low expense ratios, or fees, that are great for all investors. An S&P 500 index fund is a great place to start. It tracks the top 500 companies on the stock market.
Should you invest in alternatives?
Alternative investments typically have a low correlation to more traditional asset classes, as discussed. Alternative assets therefore provide an opportunity for portfolio diversification, reducing overall risk exposure across investments. Many alternative assets also provide a hedge against inflation.
How much of my portfolio should be in alternatives?
A new study carried out by Dexia Asset Management shows the benefits of allocating 15% to 20% of a portfolio to alternative funds. Finding a good balance between risk and return is the first aim of any investment strategy.
Which investment has the least amount of risk?
The investment type that typically carries the least risk is a savings account. CDs, bonds, and money market accounts could be grouped in as the least risky investment types around. These financial instruments have minimal market exposure, which means they’re less affected by fluctuations than stocks or funds.