Investment portfolios are traditionally based on stocks, bonds and cash investments. Manhattan Ridge Advisors helps clients develop a diversified portfolio that may potentially increase returns and reduce overall risk by adding “non-traditional” or alternative investments.
“Alternative investments” is a broad term that relates to almost all investment vehicles outside of stocks and bonds. Through First Allied, we offer a wide range of alternative investment products such as Real Estate Investment Trusts (REITs), equipment leasing, oil and gas programs, managed futures and other alternative investments for qualified clients.
Not all investment types are suitable for an investor’s portfolio. Manhattan Ridge Advisors works with experts in a variety of fields to bring the best recommendations to our clients. It is important that we consider risk tolerance and goals when recommending the addition of alternative investments for a client’s portfolio.
Why Add Alternative Investments to Your Portfolio
Alternative investments as an asset class may perform independently of traditional stocks and bonds. A sound portfolio management strategy often includes a range of diversified investments. Diversification through the inclusion of alternative investments may help investors to counter fluctuations in their portfolio. In a diversified portfolio, while one investment may be underperforming, another investment is likely to be outperforming expectations.
Please remember that diversification does not guarantee profit nor protect against loss in a declining market. They are methods used to help manage risk.
There is much to consider when adding alternative investments to your portfolio. Many investments in this asset class place restrictions upon when an investor can buy and sell, making some assets less liquid than stocks and bonds. Even if an investor can liquidate, finding a buyer may be difficult.
There is a wide variety of potential investments that fall into the alternative investment category. Working with an experienced professional will help you understand both the benefit and potential pitfalls related to alternative investments. At Manhattan Ridge Advisors, we work closely with our clients to understand individual risk tolerance and lifestyle goals to make sound investment recommendations.
Interested in learning more about Manhattan Ridge Advisors and alternative investments? Contact your advisor today or visit our website, www.manhattanridge.com, to set up an informational consultation. We’re happy to answer any questions you have.