Toronto, ON, June 8, 2023 – It’s widely known that stock market returns are weaker in the summer. Add to that today’s challenging economic landscape, and a growing number of Canadians are putting their dollars elsewhere. The result? Alternative investments are rapidly gaining popularity.
Think investments in startups, restaurant franchises and private tech, energy, entertainment, and real estate companies, to name a few.
“When people think of investing, they automatically think of stocks and bonds, but there are so many other easily-accessible investment opportunities out there that most people don’t realize,” said Tommy Baltzis, CEO of Canadian investment group WhiteHaven.
“Many startups and growth-oriented small and medium-sized businesses, for example, are seeking private funding to boost their companies, launch new initiatives, make acquisitions or upgrade technologies to support their growth,” explained Baltzis, who pioneered alternative investing in Canada and raises private funds for up-and-coming companies.
“What’s so attractive about alternative investing is that it not only provides an excellent alternative outside of stocks and bonds, but it’s also accessible to all Canadians, providing everyone with the ability to invest in growing private businesses – an opportunity that has traditionally been reserved for high net-worth investors,” Baltzis said, adding that investments can start as low as $500. “It’s a great way for people to get into investing with relatively little commitment.”
Baltzis offers these tips to get started:
Focus on diversification: As market uncertainty increases, an effective way to manage risk is by diversifying your portfolio and alternative investments are an excellent way to do so. The COVID-19 pandemic has revealed the stock market’s volatility, and many sectors are still recovering, confirming that the traditional 60% equities-40% fixed income portfolio strategy is no longer fail-proof. While alternative investments do carry risks, they can enhance returns with less market instability.
Education is key: Spend some time understanding what alternative investments are, the risks they carry, and how they can work for your financial and portfolio needs. How do you find alternative investing opportunities? Ask your financial adviser or bank for leads, look for established financial services firms who operate in this market sector, or seek guidance from accredited associations such as the Private Capital Markets Association of Canada (PCMA) or Alternative Investment Management Association (AIMA).
Be patient: Alternative investments usually involve “patient money” and a longer-term horizon for returns. This means that your investment won’t pay off right away. If you put money into a residential real estate development, for example, you will have to wait until the units are sold before you see a return on your investment. As long as you don’t need quick access to cash, alternative investments can yield strong return in the long run.
Establish clear goals: It’s important to know what your financial goals and risk tolerance levels are when making investment decisions. Are you looking for income, diversification, or protection from market volatility? As alternatives carry their own risk, consider starting small with alternative investing and gradually increasing your exposure as you become more experienced and comfortable.
Get support if needed: Research investment firms that deal with alternative investments and choose one with a proven track record in the exempt market that offers a variety of alternative investment options. Portfolio managers with expertise in alternative investing can help you assess opportunities and make informed decisions.
For more information and tips about alternative investments, visit https://whitehaven.ca/en/.
SOURCE Gail Bergman PR
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