Techolite
  • Apps
    • News
    • Custom Roms
    • Tutorials
    • Stock Rom
  • Automobile
  • Gaming
    • Tips & Tricks
  • Smartphones
  • Virtual Reality
  • Tools
  • Entertainment
  • World News
No Result
View All Result
Techolite
No Result
View All Result
Techolite

Here are the Reasons why you should Invest in Alternative Assets

mm by Nicole Dalton
September 17, 2020
in Business
0
Here are the Reasons why you should Invest in Alternative Assets
Share on FacebookShare on Twitter

When people hear alternative investment, one of the first things that spring to mind is that it is an investment that only large institutional investors have access to it or it is an investment that is way too complicated for average investors to understand. This is a common misunderstanding, and until recently, may have been almost true. However, with the recent introduction of new technology and regulation changes, access to this investment class has opened to a much broader audience. Real estate, venture capital, commodities, digital assets — these are all parts of alternative investment. 

Generally speaking, alternative investments are asset classes that are not correlated to stocks, bonds, and mutual funds. These investment instruments are different from the traditional investments most people are familiar with. A report by PwC says that “alternative investments will surpass $21 trillion in assets by 2025, more than doubling in size in eight years and reaching 15% of global assets under management.”

Most investors don’t know that this type of investment can actually be more profitable than traditional ones. Here are some of the reasons why investors should venture into alternative investments. 

Alternative investments are uncorrelated to the stock market

If you are an experienced investor, it is most likely that you already have experience in the stock market and had some big wins and significant losses. Anyone who follows their stock portfolio and has seen it drop knows that it can be painful to watch. One of the main reasons why most investors seek alternative investments is diversification. According to a recent survey by the iCapital network, diversification and attractive returns are the top two reasons investors venture in alternatives. 

An investment that is not related to the stock market means that it does not change relative to the market’s upward and downward trends. Many investors think that they are diversifying their portfolio when they hold on to publicly-traded alternatives, only to realize that they are also volatile and don’t add much value to their portfolio. 

However, many investors have also discovered other alternative investments, such as digital assets, that are not as volatile as traditional assets and can diversify their portfolios. This way, when the stock market plunges significantly, they have a hedge of protection, and not all of their investment portfolio will be affected. The stock market is popular for being unpredictable, even in a stable economy, and alternative assets can shield any portfolio from unpredictable swings in the public market. 

The alternative asset market is emerging

According to a report by Prance Gold Holdings, “The digital asset market is currently at US$ 268 billion, with an all-time high of US$ 744 billion in 2018. Major drivers for market growth are the transparency of distributed ledger technology, high remittances in developing countries, high cost of cross-border remittance, fluctuations in monetary regulations, and growth in venture capital investments. Now, trading and investments also drive the growth of the market.”

Prance Gold Holdings is an alternative investment platform that helps drive the growth of the alternative asset market. By investing in platforms such as this, investors can increase the number of trades in the alternative markets, making it more stable than traditional ones. Alternative investments can also be more profitable, especially when used with a sustainable strategy like arbitrage. 

According to the same report, “arbitrage is a form of trading that takes advantage of price discrepancies of the same digital asset from different exchanges. Traders can use an automated trading system as part of an arbitrage trading. Automated trading systems rely on algorithms to spot price differentials on different exchanges. It allows traders to jump on the arbitrage opportunity before it becomes common knowledge, and the market adjusts the inefficiencies.”

Conclusion

There are many attractive reasons why investors should venture into the alternative investment space. One of the most popular ones is that it offers an alternate way for investors to grow their portfolio without putting all their investments in one basket. Because of the growing alternative investment market, we can see more opportunities in alternatives.

Previous Post

Uncover the reason why the web is crazy about HitsBlunt

Next Post

Network Marketing Guru Alfred Nickson Shares Practical Values That Will Help You Grow As An Entrepreneur

mm

Nicole Dalton

Another outstanding member of the team is Nicole. With her crazy humor and the aura to mold every situation into light-hearted moments, she works effectively at Techolite on news topics related to Games. She makes sure to deliver the audience with News that is substantial yet brief.

Next Post
Network Marketing Guru Alfred Nickson Shares Practical Values That Will Help You Grow As An Entrepreneur

Network Marketing Guru Alfred Nickson Shares Practical Values That Will Help You Grow As An Entrepreneur

Live on TikTok: how to do it and why

Live on TikTok: how to do it and why

Get High-Quality Tax Preparation Services in Los Angeles with Robert Hall

Get High-Quality Tax Preparation Services in Los Angeles with Robert Hall

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending News

Hassan Chowdhury, the Young Entrepreneur Changing the Game

March 21, 2023
New Fragrance House Dreamour Presents Sweet Vinyl

New Fragrance House Dreamour Presents Sweet Vinyl

February 3, 2023
At-Home Tests: A Revolution in Healthcare?

At-Home Tests: A Revolution in Healthcare?

December 30, 2022
What Women Have to Face Behind the Bars

What Women Have to Face Behind the Bars

December 28, 2022
How Alfredo Barulli Leverages His Instagram Following to Travel the World

How Alfredo Barulli Leverages His Instagram Following to Travel the World

December 27, 2022
Assessing Business Leadership Attributes

Assessing Business Leadership Attributes

December 21, 2022
  • Home
  • About
  • Know our Team
  • Contact
  • Editorial Policy
  • Cookie Policy
  • Privacy Policy

© 2019 Techolite.com - Most Rights Reserved.

No Result
View All Result
  • About
  • About Us
  • Contact
  • Cookie Policy
  • DMCA
  • Editorial Policy
  • Home
  • Know our Team
  • Privacy Policy
  • Sitemap
  • Write Us

© 2019 Techolite.com - Most Rights Reserved.