Monday, January 28, 2019

What Are Alternative Investments?


Experienced investment banker Matt Eitner serves as chief executive officer of Laidlaw & Company Ltd. Tasked with managing clients’ wealth, Matt Eitner provides comprehensive investment options including alternative investments. 

Alternative investments are investments in assets outside the traditional stocks, bonds, and cash mix. This class of investments provides an alternative path to allocating wealth for the purposes of growing it over time or earning returns from it. 

Real estate and its derivations, stocks in private companies, hedge funds, venture capital, and commodities such as oil and gold have become widely accepted alternative investments. Other types of alternative assets include tax lien certificates, intellectual property, art and other collectibles, mineral rights, and equipment leasing. 

There are several reasons why investors may allocate capital to alternative investments. For one, these investments typically have a low correlation to traditional investments such as stocks and bonds. Therefore, they are a good option for diversification. Other reasons include tax advantages and higher potential for earning returns.