123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Understanding Real Asset Funds

By Author: Kelly Leary
Total Articles: 133

For investors looking to alternatives to the stock market, real asset funds are attractive for diversifying risk in less-volatile investments.


Real assets provide an excellent hedge against inflation and are particularly attractive in times of market volatility, when stocks and bonds are underperforming or erratic. This is because real assets – things such as land (real estate), natural resources (oil, gas and coal), precious metals (gold and silver), commodities (timber, wheat) and equipment – often perform counter to the market. Investors flock to real asset funds when other investments, including publicly traded stocks and bonds, are volatile or depressed.


A real asset fund allows the individual investor certain advantages. He or she can be diversified across one or several real asset categories. That investor is also joining similar investors to own more of one or several assets.


A good illustration of the advantages of real asset funds is land investment(ie, undeveloped real estate). Where an individual investor would want to limit his or her exposure on a single piece of property owned outright (or owned with the help of a loan), an asset fund made up of many investors spreads the risk, often without the need for external financing (ie, bank loans). With a larger pool of money, it becomes possible to purchase larger and more attractive parcels of land. The fund investors are also able to hire better advisors, counsellors and managers to maximise their investment. These professionals typically work within the same group, thereby guaranteeing more focused advice and greater commitment.


Currently, asset fund managers are very actively involved in real estate acquisitions, owing to the exceptionally low valuations on land coming out of the multiyear global recession. Because banks still follow stringent lending criteria, private investors, in the aggregate, in a real asset fund are better able to purchase properties with strong growth potential.

Total Views: 79Word Count: 305See All articles From Author

Investing / Finance Articles

1. All You Want To Know About An Nro Account
Author: Samantha Kennedy

2. Why You Must Outsource Accounting Services Sans Any Doubt And Fear
Author: Lee Bruce

3. Why Door To Door Loans Had Been So Popular Till Now?
Author: David Brown

4. The Latest Trend In Door To Door Loans.
Author: David Brown

5. The Ultimate Revelation Of Door To Door Loans.
Author: David Brown

6. Growing Your Company With Invoice Factoring Funding
Author: Nova Cash Flow Finance

7. All Eyes On The Following Intraday Cash Strategies
Author: robin scott

8. Choosing Chartered Accountancy Profession With Number Of Possibilities
Author: Austin K Loader

9. Greater Noida Triumphs Over Gurgaon To Invite With The Finest Golfing Luxury Living – The Hemisphere
Author: The Hemisphere

10. Towards Benchmarking- Efforts Made Towards Improving Transport Efficiency
Author: Dylan Munro

11. Tips For Ambitious Property Investors
Author: Charlie

12. Need Of The Hour For Investors - Equity Research Reports
Author: Aastha Kapoor

13. Critical Guidelines For Availing Short Term Loans In United Kingdom
Author: David Brown

14. How Do Banks Benefit From An Asset Reconstruction Company In India?
Author: Nidan Narkhade

15. Long Haul Auto Loan: Understand The Pros And Cons Before Saying Yes
Author: David Brown

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: