Alternative Investments

in LeoFinancelast year

for many years Ultra simplistic strategies that mainly revolved around buying an index fund which tracks the S P 500 have proven to be good enough for the average investor because one they were passive two they consistently delivered in terms of returns but also three systemic risks even if they existed were not in perfect storm territory fast forward to the present and a combination between pandemic issues declobalization and War has fundamentally changed the playing field confusion runs rampant with experts not even agreeing on whether or not deflationary or inflationary forces are likely to Prevail in a nutshell nobody has a clue what comes next thus a generation defining case for a smart diversification can be made with more and more investors having alternative Investments on their radar such as a Innovation oriented options for example startups digital assets and P2P lending or B quote-unquote old school options that are back in the spotlight for example art wine and agriculture assets the main Pro of this diversification approach revolves around making it possible for investors to even achieve uncorrelated returns and thereby become increase recently flexible on the con side there is of course work involved compared to merely buying an index fund plus building an art portfolio a wine portfolio and so on can get prohibitively expensive which is why investment options that facilitate fractional ownership are oftentimes needed as a potential solution head anova.io aims to provide the Best of Both Worlds by acting as a mutual fund for alternative assets thus they make it possible to gain exposure to over 12 alternative asset classes with a total budget of as low as five thousand dollars based on their data one the correlation to traditional stock markets is low with a 2.3 standard deviation 2.66 sharp ratio as well as 5.4 conditional value at risk and two earnings wise the compound annual growth rate since their mid-2020 Inception is 33.8 percent with a 15.4 percent absolute percentage return above what an S P 500 Index month would have generated can there be guarantees of course not but new and increasingly complex market conditions call for outside the box thinking so paying close attention to Alternative Investments makes perfect sense