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Minimal Living Guide

Adding Private Funds to your Portfolio

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Introduction

When the Federal Reserve and the Bank of Canada raised interest rates in 2022, both stock and bond prices fell. This has happened before. Since 1926, there have been 37 times when both stocks and bonds went down at the same time. This recent drop was due to geopolitical tensions and inflation.

Wealthy Investor's Secret

Have you ever wondered how the richest people thrive during market crashes? They invest differently. Almost 46% of their money goes into private investments like private equity, infrastructure, and private debt. These investments help them stay strong during tough times.

Access for Everyone

 the past, only a few could invest in private equity. It was like a VIP club. But things are changing. Companies like Northleaf in Canada now allow individual investors to join. Partnering with Mackenzie Investments, they offer four private funds. These can make your investment portfolio stronger.

Why it Matters

  • Better Diversification: Private funds add different types of investments to your portfolio.
  • Higher Returns: Private equity has often done better than public markets.
  • Less Volatility: These investments can make your portfolio more stable.

Private Equity Wins globally

Private equity has beaten public markets every year for the past 35 years (Slotsky 2022). No wonder the richest people invest heavily in private funds. This shows that private equity is a great addition to any investment plan.

Business/Finance

Quick Facts

  • Historical Success: Private equity outperforms public markets every year.
  • Higher Value: Private equity investments often bring better returns with less risk.

Shift to Private Investments

Since 1996, the number of publicly traded companies has dropped a lot. Today, private equity is almost 4 times bigger than the public market (Hugh MacArthur 2022).

Quick Facts

  • Lower Risk: Private funds help manage investment risk.
  • Higher Returns: Private equity can increase overall portfolio gains.
  • More Stability: Private investments can help balance market ups and downs.

Conclusion

Adding private funds to your investments can take your portfolio to the next level. Whether you’re an accredited investor or just looking to improve your investments, understanding private equity is key. Reach out today to learn how private funds can help you diversify and strengthen your portfolio.

Still got questions?

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Trademarks, including IG Wealth Management, are owned by IGM Financial Inc. and licensed to its subsidiary corporations. This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. For more information on this topic or any other financial matter, please contact an IG Wealth Management Consultant. We are committed to keeping personal information confidential. The information collected above may be used by IG Wealth Management and shared with its affiliates to inform you on investment opportunities, provide additional financial information from time to time, and for other internal purposes.

© 2024 Colleen Gillam-Judd. All Rights Reserved.

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