Types of Alternative Investments
Post on: 6 Май, 2015 No Comment
![Types of Alternative Investments Types of Alternative Investments](/wp-content/uploads/2015/5/types-of-alternative-investments_1.gif)
Old Alternatives
Previously, real estate investments were mostly homes, rentals, lots and raw land, until buildings, malls, condominiums and (more recently) real estate investment trusts got into the picture. Investments in commodities, without taking physical control of these, also developed from the days when evidence of physical availability had to be present. Equity investments in unlisted companies became popular with the advent of venture capitalism, in anticipation that success of these companies would result in value appreciation and subsequent listing.
Risks
Alternative investments were all previously considered speculative. Now most real estate transactions are considered sound investments, and even the new alternatives are considered sound investments by big pension funds. The advent of good professional fund managers and their proven analytical tools account for this confidence in the new alternatives among bigger investors. This confidence, however, has been eroded somewhat by the recent stock market debacle being attributed to derivatives and the greed of financial managers.
Other Characteristics
Alternative investments are generally less liquid than the traditional since they have no secondary market. Returns are not only more risky, but more volatile. There are also often transfer restrictions. There is normally less information as to the values and the prices of these investments. Fees charged by managers and minimum investment requirements are higher, and there is less regulation from government, giving investors less protection.
Investors in the New Alternatives
References
Resources
More Like This
List of Alternative Investments
The Advantages of International Investments
Alternatives to Investing in the Stock Market
You May Also Like
There are different types of investing that all involve putting money into something and expecting to get a return. Learn about investing.
The definition of income and expenditures encompasses different areas and types of. dividends or profit from an investment. Different Types.
List of Alternative Investments. Any responsible investment firm tells its clients to invest in a variety of markets. rather than a.
Hedge funds and private equity are very different investment vehicles. While both of these alternative investment types are considered riskier than mutual.
What Are the Types of Investment? X. There are different types of investments and it is wise to become familiar with.
Investing. Building Wealth;. Different Types of Pricing Strategy. A pricing strategy is more than the selection of an introductory price for.
Select a variety of different investment types that will diversify your portfolio. Consider money market funds as you get older.
What Types of Mortgage Investments Are Available. investment instruments similar to. Anything outside these three is considered an alternative investment.