Top Alternative Investments for High Net Worth Investors
When it comes to diversifying your investment portfolio, high net worth individuals often seek out unique investment opportunities that offer both growth potential and diversification. This article explores some of the most notable and popular alternative investments, including Master Limited Partnerships (MLPs).
Master Limited Partnerships (MLPs)
Master Limited Partnerships are a great investment for high net worth individuals, particularly those with an interest in the energy sector. MLPs are often units of energy companies, primarily focusing on oil and gas pipelines. I have personally owned these for over 35 years, and one of them still remains in my portfolio today. While the tax laws surrounding MLPs can be quite complex, they can provide a steady income stream and potentially high returns.
Bank Managed Investments: Wells Fargo
For those investors who prefer a more hands-off approach, banks like Wells Fargo have historically provided a diverse range of investment options. In my past experience, I knew several high net worth individuals who chose Wells Fargo to manage their assets. The bank offered a variety of investment options, from vineyards and wineries in Napa to many other speculative or high-growth assets. Many clients found these options satisfying, as they received positive returns.
Art as an Investment: A Timeless Choice
For the truly sophisticated investor, art has long been a favored alternative asset class. Wealth managers have consistently recommended that art and collectibles be included in wealth management portfolios. According to recent data, 86% of wealth managers believe that art and collectibles should be part of a wealth management offering. Additionally, half of ultra-high net worth investors have allocated 10% or more of their wealth to art and related assets.
At [Your Platform Name], we have developed the first platform to securitize contemporary art, making it accessible to a broader range of investors. Our research indicates that from 1995 to 2020, contemporary art prices outperformed public equities, with an annualized return of 14% compared to just 9.5% in the SP 500. Perhaps more importantly, art and other asset classes have minimal correlation, which can help protect your portfolio from market volatility. For example, there was a correlation of -0.01 between art and public equities.
By incorporating art into your portfolio, you could diversify your investments and potentially reduce the risk of downturns. Curious about how you can invest in contemporary art? You can sign up for the platform using the link provided below. Remember that past performance is not a guarantee of future results. Please review the important disclosures before proceeding.
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Important Disclosures: Past performance is not a guarantee of future results. Investments in alternative assets such as art come with risks and are not suitable for all investors. Please conduct thorough due diligence and consult a financial advisor before making any investment decisions.