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Alternative investments? Understand the risks first

The article from Moneyweb discusses the allure and risks associated with alternative investments, which include assets like private equity, hedge funds, commodities, and real estate. It emphasizes that while these investments can offer diversification and potentially higher returns compared to traditional investments, they come with significant risks. These risks include lower liquidity, higher fees, less transparency, and often, a lack of historical performance data. The piece advises investors to thoroughly understand these risks, as alternative investments might not be suitable for everyone, particularly those with a low risk tolerance or those who need regular access to their funds. It also highlights the importance of due diligence, understanding the investment strategy, and the need for professional advice when considering such investments. The article concludes by suggesting that while alternative investments can enhance a portfolio, they should be approached with caution and a clear understanding of one's investment goals and risk profile.

Read the Full Moneyweb Article at:
[ https://www.moneyweb.co.za/financial-advisor-views/alternative-investments-understand-the-risks-first/ ]