Published On: Sat, Dec 3rd, 2016

Savvy investments: What’s proving attractive for the ultra-rich?

If you follow the financial industry you may have heard the term “ultra-high net worth individuals”. It even has its own abbreviation, UHNWIs, and this is something which effectively makes the wealth management niche tick.

The definition of these individuals tends to vary between establishments, but most will hand them the tag if they have investable assets of $30 million or more.

Savvy investments

For those managing the account, with an example being Adam Rosenfeld Miami, it provides a degree of flexibility in relation to where this money can be invested. While the typical investor might only have a couple of options, it goes without saying that pretty much every option is on the table in these cases – but finding one that’s hugely lucrative isn’t easy.

We have started to research these investments recently and found that there are certain areas which are more attractive than others. Here, we’ll take a look at some of these areas and highlight how investments in them work.

Real estate

This was never going to be a surprise, was it? Regardless of the amount of finance at one’s disposal, it appears as though real estate is something that is just attractive to every investor out there.

Of course, buying the odd house isn’t going to be something that appeals to the high or the ultra-high net worth individual. Instead, it’s going to be larger developments such as warehouses, office blocks, industrial units or even large-scale residential developments.

Private equity and VC

While these two forms of investment are different, for the purposes of this page we’re going to pool them together.

Both are proving to be attractive for investors, for the simple reason that the payoffs can be so high. In the case of private equity, investors are attracted to take advantage of the high-growth opportunities that these tend to offer. Those swaying towards venture capital funds meanwhile are looking more towards the startups which carry lots of risk, yet can have monumental paybacks. Unsurprisingly, its risks calculations like this which makes the role of the wealth management group absolutely crucial in the success of an investor of this level.

Hedge funds

Something else that is proving attractive, particularly amongst those investors who pledge their faith with a wealth management group, is hedge funds.

Again, this is an instance where that knowledge of the industry is absolutely crucial. As these hedge funds are focused on a variety of different assets, it means that they can carry a lot of risk but not for the first time, the rewards can be huge.

Mutual funds

If we turn to the public sector, mutual funds are a little similar to the above. Again, this focusses on a collection of investments – but this time it hones in on the likes of stocks and bonds.

It can be another risky strategy, but one that’s often adopted for the simple reason that the returns can be huge. Due to the level of knowledge required to make a difference with such funds, the investor will nearly always turn to some sort of financial advice manager before opting for this approach.