The attraction of physical assets: invest without involving the stock market
As the Novel Coronavirus (COVID-19) spreads across the globe, so too does growing uncertainty pervade across the stock markets. In addition, worldwide issues such as Brexit, US trade wars and conflict in the Middle East highlight the many ways in which world events can unsettle the economy.
Such challenging market conditions mean investors must continue to look outside of traditional stocks and bonds for reliable sources of growth and income. As a result, it is worth exploring asset classes that don’t involve the stock market. After all, there is a high chance stocks will eventually head into a bear cycle, and investors may be grappling for reliable alternatives.
As more and more people are choosing to invest in these assets classes over more traditional sectors, there is value in knowing that potentially risk-mitigating investments are available across the UK and many are backed by the government.
What is an asset-backed investment?
An asset–backed investment is one that has a physical or tangible asset such as land or property underpinning it.
Asset backed investments comprise of either freehold or long-leasehold ownership of the land or property.
Benefits of physical assets
As well as having value in and of themselves, physical assets can also be considered as a tax-efficient investment, with greater security because of their tangible nature.
Investing in UK physical assets – such as renewable energy, forests, care homes or hotels – offers performance that is significantly less dependent on the wider markets to deliver attractive returns finely tuned to minimise risk.
Moreover, the government has said it will prioritise investment into renewable energy. This commitment will focus on improving economic and environmental futures for local communities that are becoming increasingly reliant on these sources of energy.
Additionally, land value continues to remain stable across the UK. Therefore, as the country still does not build enough houses to meet demand, the government has pledged £600 million for new homes. which will further help residential developments across the country.
Stellar Growth IHT Service: a diversified portfolio
With a discretionary managed portfolio such as Stellar Growth Inheritance Tax Service, wealth preservation, risk mitigation and capital growth are the primary focus with in-depth, specialist knowledge in each of the investment sectors that qualify for Business Relief (BR).
Our highly diversified portfolio spreads the investment across multiple sectors, granting investors access to more asset backed markets that typically require great capital to invest.
This access does not come at a cost of increasing risk, as each sector is uncorrelated to one another, as well as global economic events. This means that we manage our portfolio to generate income returns of at least 5% per annum for investors.
For clients or investors seeking long term, stable projects as well as a range of other benefits, Click here to find out more about our Stellar Growth IHT Service.
