Generating uncorrelated income is an investment strategy that refers to the process of investing in assets that have a low or negative correlation with each other so that the returns of one investment are not dependent on the returns of another. Using this strategy, a financial service like Alternative Income Solutions can help to diversify your portfolio and reduce the impact of market volatility on your overall income. Talk to an investment expert at AIS today!
How To Generate Uncorrelated Income
How To Generate Uncorrelated Income
Real Estate Investment Trusts (REITs)
REITs are companies that own and operate income-generating real estate properties. They are required to distribute 90% of their income to shareholders, which can provide a steady stream of income. REITs have a low correlation with stocks and bonds, making them a good option for diversifying your portfolio.
Alternative Investments
Alternative investments include hedge funds, private equity funds, and venture capital funds. These tend to have a low correlation with traditional investments such as stocks and bonds and can generate income through dividends, interest, and capital gains.
Commodities
Commodities, such as gold, oil, and agricultural products, have a low correlation with traditional investments and can provide a steady stream of income through interest and dividends.
Bonds
Bonds are debt securities that pay interest to the holder. By investing in bonds, you can generate income from the interest payments, which are not correlated with stock market performance. Bonds have been around for decades, and while not the flashiest form of investment, they are a stable and predictable form of investment.
Generating uncorrelated income is what the experts at AIS do best. Talk to an investment strategist today, and let us help you start earning income from your investments.