Investment Articles

Ever thought of ways on how to invest money so that you can make sure that you have a well-financed future? There are many ways to do so depending on your financial abilities. Here are just some of them that you may want to consider:

Earn Then Apply the Rule of 72

The classic way on how to invest money to make sure that you have enough for your future is to earn it slowly. It is quite simple: you just have to work every day, earn your salary, budget your money, and then save some. With this, you can earn the money that you need for your future slowly but surely. They say that you should take your expected rate of return for the year and then divide it into 72. This will tell you the number of years that you have to save this much so that you can double your cash.

Make It Big and Buy Stocks

When it comes to how to invest money, no one will ever forget buying stocks. It is such a classic move in investing so much so that you need to actually just get into it so that you can really make the most out of your money. Educate yourself about the highs and lows of the companies that are up in the stock market. Follow the trend and maybe go against the flow if you feel that you can take the risk. Monitor the progress of your investments so that you can be sure that you can stay afloat. Yes, investing in stocks needs some skill so if you are a beginner, ask someone to help you out. Eventually, you will become very good at it; it will be like playing touch and go with your stock investments.

Double Your Money Through Bonds

People who want to secure their future also want to employ ways that are safe and fool proof. For this, you can go for bonds. It is quite a big word for those who have not been initiated to this safe and wonderful option. Aim to get the zero coupon bonds because these will give you the easiest route to doubling your money. Get the bonds for a discount and then just wait for the investment to mature and you will have a return that is secure and as big as you imagined it to be.

Take the Risk with Options, Margin and Penny Stocks

If you are the type who likes to take risks and you can afford to take big risks, then you can start to take on ways on how to invest money that are far bolder than ever. You can try options, margin, or penny sticks. This will all be about speculations on the stocks of the companies that you have on your list. It is very important that you have previous knowledge of how these things go up or down to make sure that you will be making the right choices with your investments.

Been thinking how to invest money wisely? Learn ways how and where to invest your money in our website and triple your investments profits.

The Carbon Tax introduction in Australia on the 1st July doesn’t just mark a change for big businesses and the top 500 emitters; it also marks an opportunity for smart investors to get involved in the fastest growing market in the world.

The Carbon Market is set to grow faster than any commodity ever seen before. The introduction of the Carbon Tax means that the top 500 emitters now have to offset their carbon emissions by purchasing carbon credits, one metric tonne of ‘clean air’ for every metric tonne of pollution they create. As you can imagine the amount of carbon emitted by 500 companies named as the ‘top 500 polluters in Australia’ is vast indeed. Many people also believe that it is only the top 500 emitters that will be hit. This is not the case. In a recent court case a NSW mine wishing to expand its operations was told that this would only be granted should they offset their 575 Mil tonnes of carbon pollution over the next 20 years. This is not a one off either; this is set to become the norm. And as you can imagine that with 332 working mines in Australia, continuously growing, expanding and thus emitting, carbon credits are going to be THE in demand commodity with big business having no choice but to purchase them, and a lot of them.

This therefore puts those that can own or produce carbon credits in a very lucrative position. With a set price of $23 per credit, and one plot creating a projected 770 credits over 15 years with a low entry price; supply is incredibly low whilst demand is incredibly high. With the fixed price until 2015 the top emitters and other companies subjected to the carbon tax will not go offshore to purchase these credits, making the Australian market extremely lucrative. The gulf between the price of carbon credits in Australia and in the rest of the world is growing every day. Whilst Australia is seeing a set price of $23 per tonne, the European market for example is sitting at $7.85, making Australia’s individual carbon market the most profitable in the world. This is creating the carbon rush.

With a market that is so fast moving this carbon rush will not last long. Joining the carbon rush is something which all smart investors are looking to achieve. With profits of between 30% and 300% this is a market which is set to be the biggest in the world. Those in the know with the ability to get in on the scheme early are going to be very happy clients.

Capital Alternatives are market leaders in Alternative Investments and have a low entry level and low risk project which gains investors access to the carbon market whilst guaranteeing returns that surpass those in the traditional investment market. Due to limited supply and high demand opportunities within this market will not be around for long so it is something to act quickly on before it’s too late.

For a free report on an ethical, safe and highly lucrative carbon market which is available for a limited time visit http://www.capitalalternatives.co/au/lau

Alternative Investing has become a trend in recent years. The traditional market cannot compete with the returns available, which is why investors turn to alternative projects to make their money work harder for them.

A quick look at the investments available on the traditional market shows that the only way in which investors are making returns is to enter into high risk projects over a long period of time. The returns being seen are also reasonably meagre. With the rising cost of living and inflation, people cannot afford to lose money on investments. Now more than ever people need their money working harder for them, generating income and creating high returns. The stock market is underperforming and the traditional market faces issues of volatility and cannot deliver rates that are so needed.

Over ten years the S&P 500 is up just over 10 %, or about 1 % a year. On a five year basis it’s down about 18 %. Similarly the Australian Super this year has made a loss of 2%, and investors are told that they should be thankful that this was the only loss made.

The instability of the traditional market has smart investors turning away. Turning to other projects to diversify their portfolio and have their money working harder for them. A direction in which many smart investors are turning is towards the alternative investment market.

Due to the fact that alternative investments have low market correlation, they are safely distanced from the traditional investments and have therefore been far outperforming anything available on the investment market.

The most commonly approached Alternative Investment is that of property. However the Australian property market has taken a downturn lately. House prices are dropping and we are not seeing the stability that we have become accustomed to over previous years. Meanwhile other Alternative Investments are creating returns that are unsurpassed.

The Carbon Market for example is set to become the fastest growing market in the world. As a tradable commodity Carbon Credits are going to be the most sought after tangible asset. The introduction of the Carbon Tax in Australia on the 1st July 2012 has created an opportunity for Carbon Credits to be created and then traded on the open market; creating massive profits for those who own them. Capital Carbon Credits is an alternative project which creates these Carbon Credits. With the ‘Top 500′ emitters being forced to purchase Carbon Credits, this is a commodity market which is in high demand yet very low supply.

Another great example of an alternative commodity which is in high demand but in low supply is actually the commodity of food. 3.6 billion people in the world rely on rice as a staple of their diet, creating a yearly demand of 437 million tonnes of rice. Currently the world can only create 381 million tonnes a year, leaving a vast shortfall. Agri Capital is a project which is creating the biggest commercial harvest in West Africa, a harvest which will create 9000 tonnes of rice per year. Winning ‘Best Alternative Product of the Year 2011′ and with projected returns of 15 % per harvest with the last harvest creating 16.2%; this is an alternative investment which is outperforming anything on the traditional market.

A further reason that people are turning to Alternative Investments is due to the ethical side of the investments available. In recent years a lot of the big profits being made have been through mining and oil companies. Companies which pollute our atmosphere; destroying our environment.

The Capital Carbon Credits is creating clean air for Australia. Growing trees in the Gippsland of Victoria the project is taking pollutions out of the atmosphere and offsetting the damage that the ‘Top 500′ emitters are creating.

The Agri Capital Investment has an enormous social impact on the area in which it operates. Whilst generating rice, it also creates jobs, healthcare, education and local markets for the community in which it is based. Also Agri Capital set aside 60 metric tonnes of rice per year to be given back to the community at no charge. Feeding the poor and improving the lives of those in the community surrounding the project.

These investment opportunities are not only greatly surpassing any of the returns that people are managing to get on the traditional market but they are also low risk. With guaranteed exit plans and insurance in place for varying projects; Alternative Investments deliver high returns in an ethical project whilst safeguarding your initial investment.

For a free report on an ethical, safe and highly lucrative rice market which is available for a limited time visit http://www.capitalalternatives.co/australia/

The investment market can be complex to navigate, especially for the novice, and knowing the characteristics and details of any product that you are considering investing in is an important step in building a successful investment portfolio. Structured bonds, which come in a wide variety of guises, can be particularly complicated.

What is a structured Bond?

Sometimes know as structured products, or structured deposits, they can be offered with the potential to generate a regular income or capital growth.

Such bonds are usually put together by the provider to suit the needs of a particular type of investor. This means that finding the right structured bond product for your needs will depend on your individual circumstances.

Different types of product will provide different levels of risk and return. Your investment will usually be linked to a particular index, such as the FTSE 100, depending on the structured bond product that you choose. This means that any return that you receive will depend in large part upon the performance of the index that your bond investment is linked to. The investment objectives of a structured bond product should be clearly stated and made available to the investor at the outset.

Structured bonds are usually taken out for a fixed period of time, this period can vary according to the product that you choose, from a matter of months, usually up to six years. Like other fixed term investment products you may be charged exit penalties if you wish to withdraw you money before the fixed period is over. This means that you should carefully consider the length of commitment that you are able to make, or you could end up losing out.

A plan provider will usually have your investment underwritten by a counter-party such as an investment bank. before embarking on a structured bond investment you should be aware of any compensation that you would be eligible for should the firm that you are invested with, or the counter-party go bust.

Sometimes structured bonds will be sold as “kick out” products. This means that if the index to which your investment is linked reaches a certain level, the products may be “kicked out” early, usually on the following anniversary. However, if this does happen you will usually have already received a certain level of growth on your investment.

Some structured bond products will offer a degree of capital protection, but yield may fluctuate. Investing through a structured product can often be a safer option than investing directly in stocks and shares, but it is important to remember that any risks involved should be carefully considered and you could end up getting back less than you originally invested.

There are many different types of structured bonds available, and negotiating the terms and individual characteristics associated with each product can be difficult without the help of independent investment advice, particularly for the novice investor. Nevertheless, structured products can bring greater diversity to your portfolio, and with the right advice you may be able to find a product that is suited to both your attitude to risk and your desire to generate a desirable level of return for your capital.

John T Hughes writes for Savings Bonds, a site dedicated to helping you to find leading savings or investment bonds options that may be suited to your needs.

Purchasing an investment property is a big decision and one you have undoubtedly made with a view of benefiting from this purchase at a later date. Your decision to be a landlord for a rental property should not be a short term investment. There are costs associated with the purchase and sale of properties and to make it worthwhile, you will need to hold on to your investment long enough to cover the costs and make a healthy gain when you eventually sell.

The idea behind the purchase of an investment property is that the property will be rented out which helps with the ability to finance the investment and that during this time, the property will appreciate resulting in a profit when the time comes to sell.

Australia provides taxpayers with the opportunity to benefit from negative gearing aspects associated with investment properties which can assist in the decision to being a landlord in the rental market a worthwhile option and exciting venture.

To have a positive experience in owning investment property ensure that you seek expert advice from professionals who have your best interest in mind. This advice will ensure that you are aware of the various costs associated with rental properties, the best tax saving tips, the property which will offer a good return and the options for various loan structures.

There will be various tax considerations to be aware of such as what will be deductible and what will be treated as a capital expense and the various treatments of both. Depreciation matters and Capital Gains/Losses will also be of importance, therefore, it is imperative to place your taxation matters in the hands of a good tax accountant experienced in investment properties.

Without the good advice of these experts, your investment could be a costly exercise which take a considerable time to recover from.

Pat and Trish decide to purchase an investment property. The house they live in has a good amount of equity so they will be able to purchase an investment property and use the equity in their home as the deposit. They fall in love with an old home with lots of character in a suburb nearby. They decide to take out a loan of $367,500 for the purchase ($350,000) and fees ($17,500). The loan they applied for had the option to fix the interest rate for 5 years which they opted for as a safe guard against any rise in interest rates.

The property is rented almost immediately for $350 a week so they are off to a good start. Two months down the track they receive a call from the tenants complaining about leaks in the roof and gutters. After obtaining some quotes to repair the damaged roof and gutters they realise they do not have the $23000 required to pay for the repairs so they go back to the bank and obtain another loan to cover the costs. They had only just managed to be able to have the additional funds approved as their serviceability based on their income only just scraped in.

Three months go by and the tenants approach Pat and Trish again to advise them that the property is having major drainage problems. When the problem is inspected, it seems the roots of a tree has broken the sewerage pipes. The quote to repair the pipes was huge at $17,000 and Pat and Trish could not obtain anymore finance from the bank. They decide that the only choice they have is to sell the property.

The tenants move out. 4 months go by and Pat and Trish eventually sell the property. Due to the drainage issue it took longer to sell than normal and they ended up having to sell the property for $10,000 less than they they purchased. On top of that, they had to promise to fund the costs of repairing the sewerage pipes within 2 months. The costs associated with commissions to the real estate on the sale added another $10,200 to their loss.

When they approached the bank to advise of the sale and obtain the payout figure of their loan, they were reminded of the early repayment fees they will incur due to the loan being paid out while still in a fixed term period. Pat and Trish were shocked as they had no idea that this would come to the amount of $24,000. The repayment fees were stipulated in the contract, and the mortgage broker providing the loan advice did make mention of fees in connection to early repayment but Pat and Trish did not realise how high the fees would be. They had also heard that exit fees had been abolished and presumed that cancelled out any fees associated with the early repayment of the loan. They soon found out that early repayment fees were not classed as exit fees.

Pat and Trish had no choice but to suffer the loss associated with the investment property. The costs incurred with the purchase and sale, the holding costs of insurance, rates and interest, the repairs and the early repayment fees, Pat and Trish made a loss of over $100,000 in less than one year and were still left with a part of the investment loan to repay. The loss was more than what Pat and Trish made from their employment in a year and it would take them a long time to recover from this.

Thankfully, Pat and Trish were able to make some tax savings due to the negative gearing impact in their tax return. Because their costs outweighed their rental income by a substantial amount, they were able to offset it against their employment income and save thousand of dollars in tax. Although in this case the negative gearing eased the impact of the losses, the amount of money which Pat and Trish spent which resulted in the tax savings are far from a positive outcome.

The early repayment fees and the cost of repairing the drainage, were not deductible as an expense in their tax return, however, they formed part of the cost base when calculating the capital loss of the investment property on the sale. They will not be able to offset that loss until such time as they make a gain on another investment property should they choose to invest again. They are also still repaying part of the loan for a property they no longer hold.

Purchasing an investment property is a positive way to create wealth and can be done very successfully with the right advice. Many investors have made their fortune buying rental properties which in many cases even earn them a healthy income. It is an excellent means of saving as it provides an avenue for those with extra funds a way to make the money work for them. There are many success stories and it is not unusual for someone who has purchased an investment property to sell the property 7 years later and make a gain of $400,000. Not a bad earning when you consider the amount of years you would need to work to generate that amount of wealth.

Investment properties are still considered to be a positive option in Australia. Currently there are opportunities available for investors to purchase properties with a $10,000+ rebate from the Government annually for 10 years which results in it being cash flow positive. This means the purchaser can buy rentals which may end up not costing them anything at all. In fact, at the end of the year after all costs are realised, there can be a nice profit to be celebrated.

Good opportunities are available, however, expert advice from a professional is the first and best investment to make in ensuring wealth creation is a lucrative event.

Marian Trinick is a Public Accountant, Tax Agent and Mortgage Broker. Marian owns a business in Coogee Western Australia offering a multitude of services to individuals, sole traders, partnerships, trusts, companies and investors. Her Mortgage Broking experience extends to personal, motor vehicles, properties, leases, equipment finance, smsf and business. Marian has a wealth of experience and expertise in the property investment market and can provide the advice on the optimum tax savings and the best loan to suit your situation. Find out where Marian is: http://www.cockburnfinancialservices.com Call Marian now to find out how you may be able to invest in property and be cashflow positive at year end resulting in you not paying a cent for the investment. Also, ask Marian how you can borrow the funds to invest using the equity in your current property as the deposit. Refinance now and see how much you could save! 08 9434 2371 or 0412 266 597. ACL: 395605

The state of current investments available on the traditional market is not very stimulating for those wanting to make a decent return whilst not having to take a massive risk. Now more than ever, with the rising cost of living we need our money working harder. More and more investors are turning to alternative projects to create the returns that the traditional market can simply no longer make. The Carbon Market is the fastest growing market in the world. Set to outperform anything in the traditional investment market, a carbon credit investment is the most lucrative investment available on the retail market.

The introduction of the Carbon Tax on 1st July 2012 has affected far more than the big emitters it is established to tax. Carbon Credits are a tangible asset. There are therefore many profitable, safe and ethical investments to aid people on getting involved in the ‘Carbon Rush’.

In descriptive terms; a carbon credit is representative of one metric tonne of greenhouse gas emissions removed from the atmosphere; thus offsetting carbon emissions. Growing trees in the Gippsland area of Victoria, Capital Alternatives and their Project Developers are generating carbon credits from fully accredited bio-diverse woodland. These Carbon Credits are classed as ‘personal property’ in law meaning their value is protected. Those smart investors who have the foresight to acquire them can sell them on to the big emitters for returns which dwarf more ‘traditional investments’ in the current financial climate.

Although the Carbon Credit market is global, Australian investors have a unique and rare opportunity which is cause for celebration because there is no escape for big emitters. Qantas has recently announced an increase in prices in an effort to combat the cost in offsetting their emissions. These credits can’t be made out of thin air and need to created, and this is where the opportunity lies.

There is no escaping the fact that carbon credits are going to make those in the know very happy and very wealthy, the demand is enormous whilst the supply is limited. Capital Alternatives have rare opportunities for retail investors to become involved in the Australian Carbon Credits market by creating these highly sought-after credits while the price is still fixed at $23 until 1st July 2015 when the price floats.

With such high returns and guaranteed exits, this prospect will be quickly taken up by those wanting to take advantage of this unique and very lucrative market.

About this Author
For a free report on an ethical, safe and highly lucrative carbon market which is available for a limited time visit http://www.capitalalternatives.co/au/lau.

Are fixed rate bonds a wise option for your investment portfolio in 2012? With savings account rates scraping the bottom of the barrel, and an increasingly unpredictable stock market, fixed rate bonds can provide a happy medium for those seeking a little bit more for their money without the degree of risk associated with stock market investment – but are the fixed rates a problem?

When you purchase a fixed rate bond you receive a set rate of interest across a pre-agreed period of time in return for the loan of your capital. The fixed period is usually between 6 months and 5 years.

Your fixed interest rate is usually guaranteed unless the bond provider goes bust. The value of your capital is not normally guaranteed, so you may not get back the full amount of capital you put in.

Fixed rate bonds will often provide very competitive rates when compared to traditional savings accounts, so if you were to base your decision on current interest rates investing in fixed rate bonds can look like a very good option indeed.

What worries many is that when you take out a fixed rate bond you will usually have to make a commitment for a certain period of time. If interest rates begin to rise again before the bond term is over the investor could end up losing out on better rates until the bond term has expired.

The big question for those looking to find a good deal for their cash then, is when will rates start to rise again? Many economists predict that the Bank of England base rate, which has been stuck at 0.5% for some time now and plays a large role in determining interest rates across the market, will not shift until 2016. On the other hand some are predicting that the base rate will start to move again as early as 2013. The simple answer is that no-one can tell for sure.

At current rates fixed bonds offer a competitive option in comparison with many savings accounts, so holding a portion of your portfolio in such investment could prove to be a profitable choice.

The guaranteed income that fixed bonds can generate could be very valuable in times of few guarantees. However, in view of the fact that interest rates may begin to rise again in the near future you may want to consider spreading your savings across different savings and investment options which can include fixed rate bonds.

It’s always a good idea to shop around and compare bonds and other options to secure the right deal for your needs.

If you do decide that investing in fixed rate bonds could be a suitable option for you, you may wish to speak to an independent investment advisor who can help you ensure that your portfolio is tailored to your attitude to risk and personal financial circumstances.

Searching for the best fixed bond rates can be a headache. A bond comparison website is one way to search for the best fixed rate bonds and may help you to secure a competitive interest rate for your savings.

Private investing is another option for people who want their money to grow over a period of time. A lot of the investment opportunities available in this area involve ideas for start-up companies that financial institutions are not willing to give a chance to. This is why private investors are also called Angel Investors because they help those budding entrepreneurs to realize their business goals. It’s quite risky considering that you are investing in a start-up company and that you would have to help develop it and sometimes take an active management role to ensure a good return on investment. Surely, this type of investment is not for the faint of heart, but it can really give you good returns if you choose the right company to help and invest in.

Advantages and Disadvantages of Private Investing

Private investing has its own pros and cons. The obvious disadvantage is the risk you should be willing to take when investing in a start-up company. Unlike investing in stocks of an established company or corporation, you will have to deal with the growing pains of building the business up from scratch and this may mean losing money in the process. This type of investment also requires you to play an active role in the business, so if you’re looking to sit back and wait for your money to grow like stock market investments, this may not be a good option for you. The advantage to private investing can outweigh the negative aspects if it’s done properly. As a private or angel investor, you are helping people who need someone to believe in their business plan and give them the financial support they need. As mentioned earlier, this is a hands-on investment option, which can be a good thing if you have business experience and you want more control of what the company does with your money. Since it’s your money that the company is using for its operations, your input is valuable during the decision making process and you can even take a more active management role if necessary.

As a private investor, the return on investment you get will depend on the decisions you make and how you handle your share of the business responsibilities. Investments like these can work for or against you depending on the choices that you make from selecting the right company to invest in to making sound business and financial decisions for the good of the company. Private investing may be a big risk, but it can be very rewarding if you know what you’re doing.

When we are talking about investment, this word has been heard often enough. A lot of people or friends do not really understand what investment is and desperate to start investing without knowing the contents of their investments. Be careful. You may experience losses instead of profits.

Investment is a concept commonly done in the financial world in order to develop the value of money. Development is represented in the form of return or interest.

A good investment product is a product that suits to your needs and your character. It is not all of investment products are suitable and necessary need at once. You have to understand of how the product will deliver the maximum benefit and risks that may arise.

Deposit Account.

This product is commonly used by those who has a risk-tend of more conservative or safe (with fixed interest and protect the initial), as compared with other investment products. The period is very diverse, typically 3, 6, or 12 months. If you try to withdraw before its due date, you will be penalized.

Although this type of investment is less able to compensate for the inflation rate, the deposit is still required and can be utilized in the process of financial planning. This product is suitable for storing the funds that will be required within one year.

Gold – Precious Metals

There are gold bullion and jewelry. The difference is, when you are buying gold jewelry; you are buying a gram of gold plus the difficulty of manufacture. When you are willing to sell it back, the ‘difficulty value’ is not counted. Thus, for investment purpose, certified gold bullion is much better.

Property

Property investment has been recognized for long. Currently, the attraction of property is not only land, but also houses, townhouses, apartments, villas, and other residential properties. The most crucial thing when investing in property is location.

Stock

When deciding to begin to invest in stocks, you must commit to have it in the long term, 5 years-10 years. If you only intend to purchase in the short term and make a profit on the price difference, then you are not investors, but your are a trader or broker.

Stock investment is more suitable for those in young age. Why? It is because the stock is an investment product for the long term. Stocks often need more time to develop.

This investment has the principle of high risk, high return. Perform an analysis of companies with the potential to grow continuously in the future.

Mutual Funds

There are four conventional mutual fund products: money market funds, fixed income funds, mixed funds, and stock or equity funds.

Mutual funds help the investors, especially beginners, who have limited funds, time, and knowledge to investing directly into stock. The important thing is the suitability of types of mutual funds with a risk profile and your financial planning goals.

Have a successful investing in 2012! Have fun with your money!

* Analyze your Personal Financial Planning before choosing an investment type.

In the current investing climate many investors are seeking out alternatives to traditional investment assets in an effort to boost poor returns and bolster the limp performance of their pension portfolios. While stocks and shares continue to display the kind of up-and-down volatility that would make a rollercoaster jealous, real-assets including fine wine, stamps, land and forestry have all continued to grow in values as rising global incomes combine with a growing global population to boost demand against a backdrop of limited supply.

Whenever supplies of an asset are limited and demand increases, we see the value increase as buyers compete for the best assets, so those investors in control of finite resources are likely to continue to capture capital growth regardless of the performance of the wider economy.

Whilst in is certainly true that some alternative investment assets rely on the existence of wealth for their end-use market; for example stamps and fine wine rely on the existence of wealthy buyers, it is also true that certain essential assets will enjoy a demand even if the global economy were to collapse tomorrow. These safe haven alternative investments include agricultural land, energy-generating assets, infrastructure and commodity driven properties such as forestry investments.

There is a limited global stock of land suitable for agricultural production and demand for food commodities and feedstock for animal feed and biofuels in growing exponentially as developing nations expend their populace and rising incomes lead to greater consumption of commodities. Indeed the giant populations of India and China are entering their most resource-intensive phase of growth, just like the west during the industrial revolution. The difference here is that the populations and resource requirements of these countries is much larger. This makes agricultural land a precious resource that is likely to become one of the most valuable assets on earth. Not only that, but goof quality farmland produces annual income from the production and sale of food commodities, so income streams also rise as food prices increase. It is worth noting that the amount of arable land per person on the plant has halved since only the 1960’s, going some way to explaining why so many institutional investors are holding more and more agriculture investments.

Renewable energy investments that produce income from solar, wind or agricultural crops are also seen as a potentially great alternative investment opportunity as they continue to generate revenue regardless of dividend performance in traditional investment markets. As long as the wind keeps blowing and the sun keeps shining, those in control of renewable energy investment assets will continue to earn up to 20 per cent per annul income yields based on current project establishment costs.

For the long-term investor, forestry investments continue to grow in any economic weather, because the majority of financial returns is actually driven by the biological growth of trees, not the performance of the economy. Whilst a relatively buoyant economy is essential in order for there to be demand for timber products, it is growth in emerging market economies what will drive future demand, and so investors who own a stake in a commercial forestry investment property close to emerging markets are likely to capture non-correlated growth and be able to create substantial revenues from the sale of essential commodities as trees turn into valuable timber stands.

In summary, alternative investments are popular because they generate returns not dependent on traditional markets, but investors should always be careful as these kinds of real-asset alternative investment all carry asset, location, sector and counterparty specific risks that many investor may not recognise or be able to screen for, so the use of an experienced consultant with a good track record of identifying successful alternative investment assets is essential in order to avoid undue risk and maximise upside potential.

David Garner is Partner at DGC Asset Management, an alternative investments boutique specialising in property transactions in the agriculture and renewable energy sectors.