ALTERNATIVE INVESTMENT STRATEGY

LifePlan’s Alternative Investment Strategy helps with Portfolio diversification.


With returns becoming harder to obtain and risk continuing to loom, many investors are seeking additional sources of outperformance. At LifePlan, we can help you make this shift within the context of your overall objectives.


An alternative investment is an asset that is not one of the conventional investment types, such as stocks, bonds and cash. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of the complex natures and limited regulations of the investments. Alternative investments include private equity, hedge funds, managed futures, real estate, commodities and derivatives contracts.


Many alternative investments have high minimum investments and fee structures compared to mutual funds and exchange-traded funds (ETFs). There is also less opportunity to publish verifiable performance data and advertise to potential investors. Most alternative assets have low liquidity compared to conventional assets.


Alternative investments typically have a low correlation with those of standard asset classes, which makes them suitable for portfolio diversification. For this reason, many large institutional funds such as pensions and private endowments have begun to allocate a small portion of their portfolios, typically less than 10%, to alternative investments such as hedge funds.



Contact our Qualified LifePlan Consultant or Financial Planner Today.


Our qualified consultants will take the time to review your current investment account and see if your investments holding have the right asset allocation and are managed according to your risk tolerance.