Commentary provided by Carrie Cook, President, Ignite Funding 

Real Assets: Diversification Without Barriers

The volatility of the traditional and non-traditional markets over the last decade has provided one certainty: uncertainty is inevitable. During uncertain times, investors seek out strategies and advisement to provide them long-term plans providing  less volatility and risk of loss. This is usually done through added diversification into new markets, asset classes and investment types. Many have the ability to expand into liquid alts and EFTs seeking alternatives and capital preservation outside the traditional mutual fund/stock axis. For a financial portfolio exclusively in traditional markets any integration of an alternative class breaks down barriers. However, until real assets are integrated the barriers will never be truly gone and “real” diversification will not be achieved. Real estate backed by collateral provides integration of secondary markets not correlated with bear or bull market movements.

Real estate investing can provide opportunities to invest in a means that does not move in tandem with traditional financial markets. Despite unique risks and considerations, real estate investments can be a useful tool to improve the risk-return characteristics of an investment portfolio. It can increase diversification and reduce volatility, and at the same time, offer non-accredited investors the potential for enhanced returns. When evaluating the integration of real assets into a portfolio, the most ideal step is to integrate a passive, low-maintenance option. Trust Deeds provide many advantages; double digit returns, mitigated risk through collateral, personal guarantees and tax-sheltered growth without the high-maintenance processes traditionally aligned with real property. By integrating end-users and advisors alike, Ignite Funding provides a proven approach providing portfolio managers an experienced resource to integrate short-term real estate, expanded capabilities through real assets and integration of double-digit returns to increase overall portfolio results. Be the force that breaks down the barriers restricting true diversification.

 

For more information, please visit info.ignitefunding.com/advisors

Original story link:

http://www.fa-mag.com/userfiles/2016_FA_Online/liquidalts/2016_LiquidAlts_CarrieCook.pdf