3. Private real estate
Investing in private real estate or basic infrastructure that is not listed on a public stock market, such as office buildings and power and telecommunications projects, can also help diversify risk in a volatile market. .
Properties with high rental rates offer investors a greater opportunity to enjoy regular returns. Investing in private real estate is ideal for today’s investment conditions as it provides investors with stable cash flow. A long-term investment of at least three years is recommended.
4. Quantitative Hedge Fund
Quantitative Hedge Fund is an alternative fund with greater flexibility in investment strategy. Trust should be placed primarily on the skills of fund managers as they anticipate positive returns regardless of market conditions.
Quantitative Hedge Fund can invest in a diverse range of asset classes and generally employs a short selling strategy to profit during market downturns by borrowing assets to sell first before buying them back later at a lower value or using derivatives to increase leverage or other more complex strategies, based on mathematical and quantitative statistical methods.
Overall, a quantitative hedge fund can serve as a tool to add new dimensions to investment portfolios in terms of returns and risk diversification.
5. Structured note
The structured note is a financial instrument combining the main characteristics of debentures and derivatives. Its investment mechanism is based on asset prices or factors related to market changes in various forms such as stock market index, exchange rate, etc.
For example, the structured note products favored by Thai investors are knock-in knock-out (KIKO) structured notes with Thai or foreign equities as the underlying assets. They will offer good returns at a time when the market is moving in a narrow range and can provide regular returns in the form of monthly interest.
Subsequently, each asset class is exceptional and can meet the different needs of investors well. Interested investors should carefully study and understand the details of the investment or consult professionals for advice on the appropriate allocation of the investment portfolio. In normal practice, alternative assets do not represent more than 10% of a total portfolio, as their main objective is risk diversification.
In conclusion, Triphon noted: “Based on last year’s operating results, our alternative asset investment product with outstanding performance and satisfactory returns in a volatile market environment was K-GPE19A- UI, a private equity fund, which offered an average return of up to 19 percent per annum.Throughout the second half of this year, KBank Private Banking is determined to continuously introduce additional alternative investment products , both domestically and internationally, and in alignment with the investment themes of the future, namely Global Private Debt, Global Private Equity, Global and Local Private Real Estate, Quantitative Hedge Fund Strategy and Exotic Structured Note, as options investment.”