Are alternative investments for you?

Hugh Chung, Endowus Chief Investment Advisory Officer, discusses if investors should consider alternatives in their portfolios. Depending on the individual’s specific wealth goals, eligible investors may invest in alternatives to improve returns, lower volatility, and further diversify their portfolios. While they offer long-term benefits, investors should be cautious of the risks involved, such as liquidity risks which restricts personal cash flow, leverage risk, high management and performance costs, and lesser regulation of some assets such as hedge funds.