According to a new study by New York Life, wealthy women are more likely to put their money in alternative investments, such as commodities and private equity, than their male counterparts.
Traditionally thought of more conservative in their investing, this study shows a shift in how women are investing. Troy Vanderburg, CEO of the Alternative Investment Store, says that alternative investing has "changed the landscape" across the board in the last few years. Alternatives have been considered more safe and investors have found that just because something is considered an alternative, doesn't mean there's more risk.
Vanderburg believes women are more likely to go outside the traditional boundaries and alternatives offer a lot. Men have always considered private equity quite risky but if there is a company that is being backed by a private equity fund, women are more likely to seek them out and invest with confidence.
Women with a portfolio of over $1 million are looking at a 30-year retirement and Vanderburg believes alternatives offer confidence to investors across the board. Ignoring longevity as part of the decision-making process would be a mistake, he says. The investor's mindset over the last decade or so has switched from a "buy and hold" to more of an active participant, while still viewing their portfolios for use over their lifetime.
Another study has recently indicated that alternative mutual funds accounted for 3% of all mutual fund assets last year and that number is expected to double by next year. This fast growth is "substantially changing the industry," says Vanderburg and he sees a bull run in alternative investments for the next ten to twenty years, as the aging population is wanting stability, longevity and active managers with a specific skill set. The mutual fund arena is allowing for easier access to alternatives and providing a good product and management team behind those products, which makes for attractive opportunities for today's investors.
Troy Vanderburg is CEO of the Alternative Investment Store and spoke with Alternative Investing News, providing online alternative investing video news content. Alternative Investing News is a featured network of Sequence Media Group. This video was brought to you by Vantage Self-Directed Retirement Plans.