Alternative Investment Opportunities to Boost Your Portfolio

Maintaining a strong investment portfolio is about more than going all in on one type of investment. For high-net-worth investors, it is essential to diversify your portfolio with a variety of investments, each with their own degree of risk. This means that you should be on the lookout for alternative investments and not be solely relying on more traditional investment opportunities such as stocks, bonds, equities and owning property.

When looking for new types of alternative investments, it is important to consider the gaps in your portfolio. For example, every portfolio should have a stable and steady source of income that you can rely on even when there is turbulence in the market. By having a strong foundation for your portfolio, you will be in a better position to take on the riskier, traditional investment options.

The Risks of Traditional Investments

Seen as more traditional investment options, many high-net-worth investors fill their portfolios with stocks, equities and direct property ownership, despite the higher levels of risk involved. Stocks and shares have the potential to achieve significant capital gains, but the market is always fluctuating, making them much riskier investments. 

Because of this inherent risk when investing in stocks and shares, many high-net-worth investors choose to invest in the property market, which has historically continued to increase in value over the long term. However, direct property investment does not come without its own risks, while also involving significant upfront and ongoing costs, such as property management, legal fees, council rates and maintenance. 

The level of management involved in direct property ownership leaves many investors seeking alternative real estate investments that require less ongoing time, effort and cost.

Alternative Investment Funds

One of the best alternative investments for those looking to invest in the property market – without taking on the risk and commitment of direct property ownership – is private mortgage debt. With less upfront cost and significantly less risk, private mortgage funds provide you with a steady source of income that can serve as a strong foundation for your other investments.

Investing through a private mortgage fund is less about capital gains than it is about obtaining a fixed monthly income that isn’t as vulnerable to changes in the market. Exactly how secure this investment and income will be depends on the type of mortgage fund, with fixed-income funds considered one of the safer investment opportunities available. 

Within private mortgage investments, there are several options to strengthen your portfolio based on your risk tolerance. This includes options to invest in first or second mortgages, as well as private or residential property. At Athurmac, we also provide options for alternative investment management through a contributory mortgage fund, giving clients more control over what property they want to invest in.

Choose the Right Investments for Your Portfolio

The alternative investment market provides many unique opportunities for savvy investors who are looking to strengthen their portfolios. Arthurmac specialises in providing investors with an alternative to traditional property investments, providing you with a fixed income that can serve as the foundation for your future. 

If you would like to learn more about private mortgage investments or speak to a specialist, give the Arthurmac team a call on 1300 417 690. Alternatively, you can complete our contact form to hear back from us as soon as possible.