11 August 2013

Alternative Investments for the Masses? - Treat with Extra Caution

When promoters of 'Private' Equity funds start waxing lyrical about the opportunities to invest in such vehicles that may soon be offered to the average individual investor one has to raise a word of caution. It is already difficult enough for investors to assess risk and rewards in 'traditional' asset classes such as bonds and equities. But 'alternative' assets such as Private Equity, Hedge Funds or Infrastructure Funds - while offering advantages and diversification on paper - are less transparent and usually come with higher management charges than their more mundane peers.