1. Advisors look to private markets for diversification.
- Author
-
Shaw, Dan
- Subjects
FINANCIAL planners ,VENTURE capital ,PRIVATE equity ,REAL property ,FINANCIAL planning - Abstract
Financial advisors are increasingly recommending private markets as a way to diversify investment portfolios and protect against losses. Many high net worth clients are interested in private equity, credit, real estate, or venture capital funds to provide downside protection. Surveys show that a majority of wealth managers have helped investors enter private markets, with diversification being the primary goal. However, caution is advised as private markets may not be suitable for everyone, and there are risks associated with liquidity and the ability to identify good investment opportunities. Tech firms are emerging to help wealth managers navigate the complexities of private markets, and firms like Opto Investments are acting as fiduciaries to assist advisors in selecting appropriate funds. Overall, familiarity with alternative markets is becoming increasingly important for advisors to effectively serve their clients. [Extracted from the article]
- Published
- 2024