Exotic Alternative Mutual Funds

Written by admin on April 13th, 2011

Many investors today are looking for alternative mutual funds that are guaranteed to make them money or at the very least not lose them any money over the long term. These are funds that have very low risk and that won’t bring in high returns as a result. Of course, with alternative mutual funds there are no guarantees of success, but investors should realize that volatility is a necessary part of alternative mutual funds and as long as it is correlated within your portfolio correctly then you can still have a “safe” fund all the while making big returns. Remember, you can invest in exotic alternative mutual funds and be successful. You don’t need to correlate the word “Exotic” to anything that is risky or not worth investing in. Similarly, don’t turn your nose up at various investing strategies that you might not understand or that might not have a recent performance record that is off the charts. Instead, take the time to do some research and learn about various investing strategies. Get inside each strategy and decide what you think will work the best long term for your portfolio. There are many experienced fund managers that will be willing to help you and can guide you in the right direction. Just don’t work with a fund manager who is so conservative that losing a couple dollars isn’t an option. You want a fund manager who is progressive, up to date on all types of investing, and willing to diversify your portfolio to make it successful. Be sure your fund manager is aware of foreign currencies and willing to invest in them. These are just a few things you will want to keep in mind before making any investments or choosing an investment manager. Just remember that when you have various alternative mutual funds to invest in you will want their volatility to be unrelated. That way, you can invest in higher volatile funds with the opportunity for higher returns but overall have a portfolio with a lower volatility simply because the volatility of each fund is not correlated. It’s an excellent strategy for those interested in investing in alternative mutual funds.

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