FMP
Jun 10, 2024 9:21 AM - Parth Sanghvi
Investing in traditional asset classes like stocks and bonds is a well-known strategy. However, incorporating alternative investments into your portfolio can provide significant benefits, including diversification and potential risk reduction. This article explores the role of alternative investments and how they can enhance your portfolio.
Alternative investments are financial assets that do not fall into the conventional categories of stocks, bonds, or cash. These can include real estate, private equity, hedge funds, commodities, and more. They are often less liquid and more complex but offer unique opportunities for diversification.
Real Estate
Private Equity
Hedge Funds
Commodities
Cryptocurrencies
Collectibles
Diversification
Potential for High Returns
Inflation Hedge
Access to Unique Opportunities
Liquidity Risk
Complexity
Higher Fees
Assess Your Risk Tolerance
Do Your Research
Diversify Within Alternatives
Monitor and Adjust
Incorporating alternative investments into your portfolio can offer diversification benefits, reduce risk, and provide opportunities for higher returns. However, it is essential to understand the unique characteristics and risks associated with these investments. By carefully selecting and managing alternative assets, you can enhance your overall investment strategy and achieve a more balanced and resilient portfolio.
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Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...