Why alternative funds are getting more popular?

13 February 2019

Alternative funds are getting more and more popular for private and institutional investors.

They are now viewed as an asset class in their own right – mainly due to their often low correlation to equity and bond markets.
So this is an investment vehicle made up of a pool of money collected from many investors to invest in a portfolio made up of assets other than classical stocks, bonds and cash.

Alternative funds follow their distinctive business model and therefore are considered immune from broad market movements. Considered as a great diversifier to a portfolio strategy, their safe haven properties are evident over periods of high volatility in the markets.

Popular examples of alternative funds are from the healthcare sector (services), bridge financing, mining, real estate and land,  – they are tangible assets and therefore are less liquid than classic mutual funds or ETFs.

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