Whether you’re just entering the world of alternative investments or have already invested in alternative investments, there’s no doubt you’ve heard many pros and cons of alternative investments. Of course, no investment comes without complexities and risks. That’s why it’s essential for investors, whether beginners or seasoned, to understand the ins and outs of whatever investment they’re considering to make more informed decisions about what investments they include in their portfolios. 


Informed investors find accurate information to help support their investment decisions; that means filtering out the myths from the facts. So, here are three common myths about alternative investments debunked.


Myth: All alternative investments are the same

The term “alternative investments” covers a much wider range of investments than most people realize. Of course, there are the more well-known ones like real estate investment trusts (REITs) and private mortgage investment corporations (MICs). The list of types of alternative investments is longer and more varied than you might expect; this is why Canadian Securities Administrators (CSA) say alternative investments are “some of the most complicated types of investments.” Because of how broad the umbrella of alternative investments can be, it doesn’t make sense to say they’re all the same.


Myth: Alternative investments are only for ultra-rich investors

The truth is that a wide variety of investment offerings fall under the umbrella of alternative investments, which means they can all appeal to different types of investors with varying income levels. Generally, alternative investments are available to investors who meet certain suitability requirements but aren’t exclusive to ultra-rich investors.


Myth: Alternative investments add a lot of risk to your portfolio

When it comes to risk, it depends on the specific type of investment. Canadian Security Administrators say that alternative investments often come with higher-than-average risks for higher-than-average return potential and are meant for investors who can afford to take on higher risks or pay for specialized advice. CSA also mentions that it’s important that you understand and are comfortable with the possible risks associated with the investment “and never invest in anything you don’t fully understand.”


Alternative investments, like non-publicly traded MICs, offer a unique investment opportunity and are a prime example of an alternative investment that allows you to get involved indirectly in the mortgage lending market. At Giavest™ Capital Mortgage Investment Corporation (Giavest Capital MIC), our agents at CVC™ Market Point Inc. aim to help investors like you get involved in an alternative investment by supporting the real estate lending market in Western Canada. If you’re interested in learning more about what we do and seeing if Giavest Capital MIC is a good investment choice for you, get in touch with our agent for more information.


Giavest™ Capital Mortgage Investment Corporation is a Canadian exempt market product intended for distribution by way of an Offering Memorandum only in those jurisdictions where it may sell securities through a registered exempt market dealer, and this information is not to be construed as an offer or solicitation for the sale or purchase of securities. There are no guarantees of future performance or dividends. Prospective investors should read the Offering Memorandum before making an investment decision.