What Are Alternative Investments? A Comprehensive Guide to Expanding Your Portfolio

In an increasingly complex financial landscape, diversification is key. But how can you move beyond traditional stocks and bonds to ensure your investments are resilient? Enter the world of alternative investments, a sector that presents unique opportunities and risks. Tailored especially for beginner investors in Singapore, this guide will walk you through the essentials of alternative investments, highlighting local nuances, and the role of platforms like Kilde in this intriguing market.

Definition of Alternative Investments

Alternative investments are non-traditional assets that differ from conventional investment options like stocks, bonds, and cash. They include a wide range of strategies and instruments, often providing investors with diversification and potential for higher returns.

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Types of Alternative Investments

Why Alternative Investments are Needed

In the modern investment landscape, alternative investments can be a valuable tool for capital preservation, diversification, and potentially higher returns. Especially in dynamic markets like Singapore, alternative assets can add robustness to a portfolio.

Alternative vs Traditional Investments

Understanding the differences between alternative and traditional investments is crucial for any investor looking to diversify their portfolio. While traditional investments like stocks and bonds are familiar to most, alternative investments offer a different approach to growing capital. In this section, we will explore a side-by-side comparison of these two investment paths, shedding light on their unique characteristics and roles within an investment strategy.

Comparison of Alternative and Traditional Investments

Popular Categories of Alternative Investments

Alternative investments offer a rich array of options for investors seeking to diversify their portfolios. Here is a list of examples of popular alternative investments as well as their respective focus areas:

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Advantages and Risks of Alternative Investments

In this section, we will explore the key advantages and risks associated with alternative investments, shedding light on what makes them an appealing yet complex choice for investors.

Advantages:

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Risks:

Alternative investments in Singapore

In the bustling financial landscape of Singapore, investors are constantly seeking novel opportunities to grow their wealth and diversify their portfolios. Here are a few examples of alternative investments available in Singapore.

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Among the plethora of investment options, alternative investments stand out as a promising avenue, especially in the field of private debt. One platform leading the charge in this innovative investment realm is Kilde.

Kilde is a pioneering platform in the realm of alternative investments, specializing in the securitization of these assets into privately placed securities. With a license for dealing in securities and a dedication to transparency, quality, and value, Kilde connects institutional and accredited investors with carefully selected private debt deals, real estate debt, venture debt, and more. 

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Kilde connects family offices, funds, and accredited investors to investment-ready private credit deals in developed and emerging markets. We offer senior secured loans to last-mile lending companies with strong capitalization, a healthy balance sheet, and a capable management team. These loans typically last 12 to 36 months, with investors receiving monthly coupons and early redemption rights. So far, Kilde has maintained a 0.0% default rate.

Offering returns of up to 13.5*% per annum, Kilde serves as a bridge between private credit investors and lending firms. By focusing on meticulously analysed investments, Kilde enables both seasoned and novice investors to venture beyond traditional stocks and bonds, tapping into a dynamic market with strong growth potential.

Key benefits include: 

• High yield: Get up to 13.5% p.a. for products that yield 8% p.a. elsewhere
• Zero transaction cost: Save up to US$100,000 in investment structuring fees.
• Deal flow access: US$100M+ carefully vetted and constructed senior secured private credit deals
• Investment-ready: Skip lengthy and labor intensive investment due diligence
• Flexibility: Most deals have an option of early redemption at face value with no penalty. 

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‍Sources:

1. investopedia.com
2. sg.finance.yahoo.com

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_{*KILDE PTE LTD (“Kilde”) is incorporated in Singapore (registration no. 201929587K) is licenced and regulated by the Monetary Authority Singapore and holds a Capital Markets Services Licence (CMS101016) and an Exempted Financial Advisor License under the Financial Adviser Act. The information provided in this marketing material is intended for “accredited investors” and “institutional investors” (collectively “qualified persons”) only. This marketing material, and any information in this marketing material, or any documentation that Kilde provides in relation to this marketing material is provided without any representation or any kind of warranties whatsoever (whether express or implied by law).}

_{This advertisement has not been reviewed by the Monetary Authority of Singapore.}