Authored by – Alexander Cavendish, Chief Executive Officer, Hedonova

Traditional investments have ruled the world of investment for a long time, but in the last few years, another domain of investment options – alternative investments has become increasingly popular. Alternate investments, as their name suggests, are asset classes independent of the stock market and have a name for being highly lucrative. However, despite their growing recognition, investors often associate alternative investments as being reserved for institutional investors, angel companies, and other high-net-worth individuals. Mostly because they still predominate the alternative investment space. Hedonova recognized a gaping market need for better accessibility to alternative investments irrespective of factors like financial status, geography, or overall complexity of alternative investment avenues. Here is how Hedonova is democratizing access to alternative investments for all.

Breaking the high minimal investment barrier

Historically, alternative investments have had steep investment thresholds, some even going up to a million US$. These high investment thresholds have kept independent/ retail investors from accessing alternative investments. To give retail investors a fair seat at the table, Hedonova reduces the traditional high minimum investment requirements associated with their alternative investment funds to only up to 5000$. This allows investors to gain access to high-value investments at a fraction of the general capital amount required. A wider audience can now gain entry to an otherwise exclusive club of six-figures-only individuals and unlock profitable asset classes.

Offering global diversification benefits 

Hedonova tackles locational barriers by giving investors instant and easy access to a range of global alternate investments. Hedonova offers access to a range of alternative assets in a curated singular fund, including real estate, private equity, litigation finance, venture capital/ unicorn start-ups, agronomy, music royalties, art and collectibles, and even the spirits industry. Investors get global diversification benefits across 26 geographical borders, 55 national currencies, and multiple asset classes. Simultaneously, Hedonova’s team of global experts and dedicated managers consistently align your portfolio requirements with the ever-evolving economic, political, and regulatory changes to mitigate risk and maximize return on investments.

Demystifying the complexities of the alternative investment landscape 

The alternative investment is still quite complex despite its growing recognition in the market. There is still a dearth of reliable information for investors. Hedonova makes alternate investments more accessible by simplifying alternative investments and everything relevant to them. It has a bank of learning resources in an easily digestible format that consists of updated and relevant information and updates for investors. By educating investors about the potential risks and rewards of alternative investments, Hedonova empowers them to make informed decisions. Moreover, the team at Hedonova is available round the clock through text, calls, WhatsApp, and email for any investor needing support and guidance.

Offsetting risk factors like illiquidity, tax cuts, and high management fees  

While there have been significant regulatory changes and improvements in the alternative investment landscape, and while they have the potential to offer lucrative returns, alternative investments do carry a few risk factors that can lower the value of returns earned. To ensure investors get to keep the maximum of their profits, Hedonova offers additional benefits like in-house tax planning support and currency hedging for both US and non-US investors. Investors are subject to their own country’s tax rules and get their returns in their local currency appreciated against the US dollar. Hedonova’s funds are also liquid – which means investors don’t have to comply with any mandatory lock-up periods and can withdraw their money anytime. Additionally, investors don’t have to worry about paying extravagant management fees. Hedonova charges a fee 60% lower than the industry average, a nominal 1% management fee every year, and a fairly adjusted 10% performance fee for the highest value earned under an investment.

Hedonova is making alternative investments more inclusive on its platform by lowering barriers to entry. By doing so, the platform is helping individuals from various demographics reap the potential benefits of alternative assets. However, investors should always conduct thorough research, assess their financial goals, and consider their risk tolerance before delving into the world of alternative investments.

This article is authored by Alexander Cavendish, Chief Executive Officer, Hedonova

For more information on Hedonova, visit: https://hedonova.io/