For more sophisticated investors who are interested in opportunities beyond publicly traded stock and bond markets, alternative investments can play an important role in diversifying your portfolio through broader exposure.
Alternative investments can be tangible assets like precious metals, art, or wine, but are usually financial assets like private equity, private credit, hedge funds, or private real estate.
They can be a powerful tool to help achieve greater portfolio diversification, add protection in falling markets, cut down on volatility, and have the potential to generate higher yields over the long term.
Northwestern Mutual offers a variety of alternative investment products, including interval funds, hedge funds, private credit funds, private equity funds, private real estate funds, and opportunity zone funds.
However, because alternative investments tend to carry a high level of risk and low liquidity, they aren’t right for everyone. Let’s talk about if they make sense for your investment strategy.