6 Reasons Why You Should Consider Alternative Investments

One investment strategy to balance the risk of a portfolio is the incorporation of alternative investments. 

Alternative investments can include anything from commercial real estate, private equity, venture capital, our Innovative Capital Income Fund), and more. 

Learn more about the ICIF here 

If you are seeking a lucrative investment opportunity for your clients, we have six compelling reasons to consider alternative investments. 

1. Diversification and Risk Mitigation

One of the primary advantages of integrating alternative investments lies in their ability to provide diversification beyond traditional asset classes such as stocks and bonds. 

By including assets like real estate, commodities, private equity, and hedge funds, you can reduce exposure to market volatility and potentially minimize losses during market downturns. 

Diversification acts as a protective shield, ensuring that your overall portfolio remains resilient even in turbulent times. 

2. Enhanced Return Potential

Alternative investments often present an opportunity for enhanced return potential compared to traditional assets. Commercial real estate, for instance, can generate rental income and property appreciation, while private equity and venture capital investments can offer substantial capital gains. 

By strategically incorporating alternative assets, you can tap into additional revenue streams that may not be available through conventional investments alone. 

3. Low Correlation to Traditional Assets

One of the standout features of alternative investments is their tendency to exhibit low correlation with traditional assets. This means that the performance of alternative investments is not entirely dependent on the movements of stock or bond markets. 

This unique characteristic allows you to construct portfolios that are less susceptible to systemic risks and market fluctuations, ultimately leading to a more stable and balanced investment strategy. 

4. Access to Unconventional Opportunitiest

Alternative investments grant access to opportunities that are typically not available to individual investors. This exclusivity can be especially appealing for clients seeking to diversify their portfolios further. 

Whether it’s investing in startups, participating in private placements, or gaining exposure to niche industries, you can leverage alternative investments to offer investors a broader range of choices, potentially leading to higher returns. 

5. Inflation Hedge

Certain alternative investments, such as commodities and real estate, have demonstrated an ability to act as effective hedges against inflation. Inflation erodes the purchasing power of traditional assets like cash and bonds. 

By allocating a portion of a portfolio to alternative assets, it may be a smarter move to preserve your wealth in times of rising prices, ensuring your long-term financial goals remain intact. 

5. Long-Term Value Creation 

Alternative investments often operate on longer time horizons than traditional assets, aligning well with clients’ long-term financial objectives. For instance, real estate and infrastructure projects may take years to develop and generate substantial returns. 

Generate Passive ROI with the Innovative Capital Income Fund (ICIF) 

Is the Innovative Capital Income Fund a smart alternative investment for you? The Innovative Capital Income Fund strives to generate monthly income with principal protection for investors through exposure to a diversified pool of secured private real estate debt investments.

It is backed by historical performance of 8 to 10 percent annually and managed by Dema Zlotin and ICC CEO Travis Likert, each with over 25-year track record in real estate debt financing. 

Learn more about the Innovative Capital Income Fund here 

Here is what we look for and require from each investor who is part of the fund. A strong and steady flow of incoming deals, strict investment (and low-risk) criteria, and active portfolio monitoring and management all support a sustainable monthly ROI:  

-Targeted Investor Return: 8-10% per annum  

-Monthly distribution  

-Suitability: for accredited investors & Self-Directed Retirement Accounts  

-Offering size: $100,000,000 

If the ICIF is something you would be interested in, please reach out to us today and one of our team members will be in touch shortly.