Login   Home  | About GetAlts  |  Contact Us  |  Site Map   

Alts in a Portfolio

While diversification does not guarantee against a loss, it is an important component of reaching long-term financial goals while attempting to mitigate risk.

Move the slider below to change the allocation of alts in a hypothetical portfolio. You'll notice that as the allocation of alternatives is increased, the return of the portfolio also increases and the standard deviation of the portfolio often decreases.

Performance displayed represents past performance, which is no guarantee of future results. Performance does not include fees, therefore returns for the portfolios would be lower due to impact of fees and expenses not included here. Source: Calculated by Rydex Investments using information from Bloomberg. This is for illustrative purposes only and is not indicative of any investment. No assumptions should be made that similar asset allocations will be profitable, suitable, or perform as indicated above. Allocations and their percentages should change based on an individual investor's needs. The indices used to determine the return and risk figures for the portfolios shown were: stocks by S&P 500® Index; bonds by Barclays Capital U.S. Aggregate Bond Index; cash by Bloomberg 1 Month CD Index; and Alts in equal amounts: NAREIT (National Association of Real Estate Investment Trusts)®, S&P GSCI™ Commodity Index, Credit Suisse/Tremont Hedge Fund Index, Credit Suisse/Tremont Long Short Equity Index,S&P DTI. Click here for descriptions of the referenced indices. Indices are not available for direct investment.

 

but_continue


The alternatives strategies and asset classes mentioned are not suitable for all investors. Many alternative strategies use sophisticated and aggressive investment techniques such as leveraging, short selling and derivatives. The more you invest in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. The use of short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. Theoretically, stocks sold short have the risk of unlimited losses. The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks that it would not be subject to if you invested directly in the securities underlying those derivatives. Additionally, certain alternative strategies tied to hard assets such as commodities, currencies and real estate, may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, -such as droughts, floods, weather, livestock disease, embargos, tariffs and international economic, political and regulatory developments. No investment strategy can guarantee a return in a declining market. Additionally, an investor could lose all or a substantial amount of their investment. For more information about these strategies and their risks please consult your financial advisor.

This material is not intended to be a comprehensive overview of the subject matters discussed. It is intended to be general in nature and should not be construed as investment advice or a recommendation of any specific security or strategy. Before investing in any of the investment products or strategies discussed, consult with your financial advisor to determine if they are appropriate for your objectives, risk tolerance, income level and investing time horizon.

Rydex SGI offers funds with investment strategies similar to those referenced on GetAlts.com.

Read the fund's prospectus and summary prospectus (if available) carefully before investing. It contains the fund's investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

Rydex|SGI funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors® and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

©2012 Rydex SGI. All rights reserved.