Evaluating the Efficiency of Alternative Investment Vehicles in Modern Portfolio

The evolving global economic landscape has prompted investors to diversify their portfolios beyond traditional stocks and bonds, leading to the increasing prominence of alternative investments. This study examines the role and effectiveness of alternative investment options, such as private equity,...

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Bibliographic Details
Published inInternational journal for research in applied science and engineering technology Vol. 12; no. 4; pp. 1494 - 1506
Main Author George, Nikhil Varghese
Format Journal Article
LanguageEnglish
Published 30.04.2024
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Summary:The evolving global economic landscape has prompted investors to diversify their portfolios beyond traditional stocks and bonds, leading to the increasing prominence of alternative investments. This study examines the role and effectiveness of alternative investment options, such as private equity, hedge funds, real estate, and commodities, in modern investment portfolios. These non-traditional assets offer unique opportunities for risk management, diversification, and potential growth, making them appealing choices for investors seeking to enhance their portfolio's performance and stability. The research highlights the key factors driving the growing appeal of alternative investments, including their ability to provide diversification benefits by spreading risk across a range of assets with low correlation to traditional market indices. Additionally, these investments present opportunities for increased returns, particularly in low-interest rate environments, and enable investors to access emerging markets and industries, broadening their investment horizons
ISSN:2321-9653
2321-9653
DOI:10.22214/ijraset.2024.60087