Alternative investments allow you to depart from the traditional equity/bond framework. This approach contributes to a better spread of risk without making concessions on returns. For individual investors, it is easier to access via a fund.
What is an alternative fund?
Alternative funds differ from traditional ones either by the type of portfolio asset or the specific nature of their investment policy. Their aim is to optimise a portfolio's risk/return ratio by including asset classes like real estate and commodities that have little correlation with traditional investments. They can also integrate investment strategies like quantitative management or an absolute return objective that enable financial market inefficiencies to be exploited.
- Optimal risk distribution via broad diversification, even with limited initial capital.
- Large long-term potential return
- Made to measure: alternative sub-funds exist to match every investor profile – conservative, defensive, neutral, dynamic and aggressive.
- Puts inaccessible markets or sophisticated management techniques within reach of the private investor at little cost.
- Good liquidity: most alternative funds are traded daily based on their net asset value.
- Highly specialised management by genuine experts in their fields or based on advanced mathematical models.
There are various types of alternative fund, with very diverse risks. Before making an investment decision, investors are asked to read the official documentation that among other aspects describes the risks inherent in the sub-fund, recommended investment horizon and risk category.
Choose the alternative fund that suits you
To afford a place for alternative investments in your portfolio, base your choice above all on your investor profile as well as on the overall profile of your portfolio. While real estate and commodities are generally the reserve of investors accustomed to financial risks, there are funds that place the benefits of quantitative management within the reach of all – and even the most cautious – investors.