What are Alternative Assets?
Alternative Assets are a newer class of assets that have not been traditionally considered part of an investment portfolio. Historically, they have been more popular among high-net-worth individuals and institutional investors, mainly because they require larger initial quantum. These assets come in many varieties, and a common thread is their low correlation coefficients with the traditional assets. However alternative assets do not take the place of these traditional ones. The main advantage of alternative assets is that they help diversify an investor’s portfolio.
One of the Alternative Assets is Infrastructure. It is a growing asset class and today, there are more infrastructure investment opportunities than were previously available.
Many investors have been looking into safer ways to invest their money and “Alternative Investment” have become increasingly popular. Infrastructure is presenting attractive opportunities for investors to co-develop the basic and underlying framework of the land.
What is infrastructure?
Some of the hard infrastructure include providing the energy, water management and communications, necessary to provide essential services to the service land plots.
Key benefits for investors
Volatile and uncertain markets are highlighting the benefits infrastructure investment can bring to an investor’s portfolio. In addition to the potential for smoother and more predictable performance, by including infrastructure investment to compliment a diversified portfolio, investors can benefit:
- risk-adjusted returns;
- low correlation to traditional asset classes;
- relatively short term and stable yields against inflation.