Alternative investments are financial assets that fall outside the traditional categories of cash, equity and income. Many investors seek alternative investments for various reasons, including the following:

1. Why Invest in
Alternative Assets?
Kevin Neal
Business

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Why Invest in
Alternative Assets?
Alternative investments are
financial assets that fall outside
the traditional categories of
cash, equity and income. Many
investors seek alternative
investments for various reasons,
including the following:
Favourable Taxes
In some instances, the returns
generated from alternative investments
may be subject to more favourable tax
rates than other forms of investments.
Better Conditions
At some point, the factors and
conditions around an alternative asset
might make it appear more appealing
and relatively easier to invest in than
other investments. For example, in times
of economic distress, some types of real

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Investors might opt to invest in
an alternative investment if
they feel they have in-depth
knowledge or possess unique
skills in a specific area.
estate properties can become available
at significant discounts, allowing
investors to pay a fraction of the real
value to acquire a long-term investment.
In-Depth Knowledge
Investors might opt to invest in an
alternative investment if they feel
they have in-depth knowledge or
possess unique skills in a specific area.
For example, if an investor has vast
experience in the energy industry, they
may realise when an opportunity for
significant returns presents itself.
Control
Some investors are averse to investing
in traditional asset classes due to the
volatility they’re exposed to, preferring
to invest in alternative assets which
provide a better sense of control over
the investment. For such investors,
having control is a significant factor
when investing.

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