Tony writes financial opeds - see more here
Anyone who has followed me over recent years will know I am a big believer in diversification, and not putting all my eggs in one basket.
I am also a champion of the smaller investor, who generally gets shafted by various “experts” who charge high fees and provide dubious services.Having been around for some time, I know how money-goes-to-money, and we all know that more significant funds and programs tend to offer a greater return to large investors.
These funds have no interest in catering to the smaller investor. Indeed, they make entry levels so high that most smaller investors are excluded from enjoying the higher growth that major investors earn. Moreover, even those with enough investment capital to enter successful programs and funds, tend to see their return diminished due to excess fees, performance fees, custodian charges, etc.
Whilst this bias in favour of the more prominent investor is understandable, it is also a little unfair. That is why the guys at trademakers have launched their Fractionalised Investments programs.
What are Fractionalised Investments?
Very simply, fractionalised investments allow smaller investors to enjoy the same returns, on the same conditions, as more prominent investors.
In other words, whereas a hedge fund would require you to deposit a minimum of 100,000 dollars into their fund to benefit from the performance, which many mum and pop operations might not have, with a fractionalised investment, you could invest as little as 5,000 dollars and still enjoy the same returns, and on the same conditions, as HNWIs and institutional investors.
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More importantly for me, because entry levels into these fractionalised investments are so low, if you do have 100,000 dollars to invest, you can spread this sum across numerous alternative investment funds and programs and have a much more diversified and robust portfolio.
Launching these fractionalised investments could not be more perfectly timed, as the days of having a 60/40 equity/bond portfolio are coming to an end. As illustrated over recent months when bonds and equities started to move in-sync rather than in opposition.
As I have written consistently in previous reports, over the coming years investors will need to have a diversified portfolio and be more proactive in protecting their wealth and growing it. Moreover, whilst my reports are generally written to guide investors and speculators who actively trade their capital, most people are too busy in their daily lives or need more capacity to make daily trading decisions for themselves. That is why I like these fractionalised investments, because it’s all done for you.
trademakers offers a stable of Alternative Investments and Hedge Funds for smaller investors to choose from; where you can place your investment capital or part of your capital to build a portfolio in a bunch of alternative investment funds to suit your particular risk profile.
As I mentioned, there are no entry or exit fees, you can monitor the performance at least monthly, and if you wish to move from one fund or program to another, there are no charges.
With trademakers constantly adding new funds and programs to its platform, this ability to move capital from one to another at no cost is a massive plus.
In a world of financial uncertainty, inflation and even stagflation, we will need to be flexible, no matter who we are or the size of our portfolios. Fractionalised investments not only facilitate this, but they allow smaller investors to enjoy the same returns (on the same conditions) which were, until now, only available for large multi-millionaire investors.
Please explore the trademakers website for more information. And watch out for more about these fractionalised investments over the coming months.