The up-coming generation of individuals near retirement is actively looking for alternative investments, such as private equities, commodities and hedge funds. The reason is not only related to higher returns, but also is based on providing a hedge against risk by diversifying portfolios.
The interest is carefully using asset classes that were once considered to be unobtainable and highly risky. This comes as a reaction to prior conservative asset allocation diversity across stocks and bonds in the time when those failed to offer the promised market protection back in 2008.
Most investors were so dismayed by their losses that they didn’t even took into consideration the strong market’s recovery. Also, that was the same situation for older investor that missed out on the run up.
Therefore, the current generation of near-of- retirement investors strives to catch up and in the same time to hedge their portfolios, peculiarly with the stock and bond market fully priced, as many consider.
Most investors acknowledged that when there is downward movement, there is also potential for all asset classes to take a hit.
In addition to the above mentioned, private equities and venture capital funds offer a way to diversify, not to mention access to some of the world’s most successful companies or IPOs that can turn out into next Apple or Facebook. These two high-return assets represents the domain of pension funds and endowments. They are actively becoming more flexible and suitable for individuals, providing not only higher returns, but also safer ones.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us. We understand the financial challenges that make it difficult to achieve your targets, and we’re qualified to provide the assistance you need. We believe your financial progress, regardless of your present situation or economic condition is achievable.
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