As working professionals, we are often bombarded with advice about diversifying our portfolios to spread risk – you must invest in alternatives, you hear.  Invest in cryptocurrency, invest in property, invest in emerging markets, invest in gold, invest in art and antiquities, invest in unicorn start-ups etc.

“In essence, an alternative investment is any investment that is not one of the three traditional asset types (stocks, bonds and cash).”

 This can all be very overwhelming and confusing. But it does bring up a very good question.

What percentage of your portfolio should you invest in alternatives?

There are many thoughts on this, but generally it is suggested at between 10-20%. This all depends on your individual financial circumstances and risk appetite. You adviser will be able to give you recommendations on diversifying into alternatives depending on your current portfolio structure.

Possible benefits of investing in alternatives

• It allows you to diversify your portfolio
• Alternatives could increase your income by offering higher returns than traditional investments - there is a possible higher risk, but also possible higher returns
• It could help mitigate market volatility
(some info taken from alternativeinvestmentcoach.com)

deVere Acuma now offers an actively managed Diversified Liquid Alternatives option through their dVAM funds.
Chat to your deVere Acuma adviser about possibly adding liquid alternatives to your portfolio. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.