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If you already have an investment portfolio and you’re thinking about how to add diversification or increase your potential to earn long-term returns, consider alternative investment strategies. Alternative investments are investments that:
- are not part of the traditional investment classes like shares and bonds
- provide a pattern of investment returns that complement traditional assets.
They can give you the potential for boosted long-term returns and diversification, but in some cases you must be prepared to take on higher risks and maybe even lock away your money for a set period of time.
Why invest in alternative assets?
Alternative investments give you 2 potential benefits:
- return enhancement - they can help enhance your overall portfolio returns by adopting strategies that offer the potential for attractive returns, often with less volatility (fluctuations in your returns) than traditional investments
- portfolio diversification - they can diversify your portfolio because their returns often have a low correlation to traditional investments, making the returns from your portfolio potentially more stable
Do alternative investments suit you?
Alternative investments might suit your needs if you:
- have established (or are establishing) a well-diversified portfolio
- are looking to increase the potential return of your overall portfolio
- are comfortable that in some cases you may be unable to access your investment for an extended period of time
- want to diversify your investment risk outside traditional asset classes.
Choose a situation that best suits you from the table.
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| Your goals |
Our suggested strategies |
| Explore how alternative investments fit into your portfolio |
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| Diversify your portfolio and increase overall returns |
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| Understand how absolute return strategies work |
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This is General Advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice you should consider the appropriateness of the advice having regard to your situation.
For information relating to our financial services you should refer to the Macquarie Equities Ltd Financial Services Guide.
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