A common problem faced by investors today is the lack of knowledge on how to diversify their investments. As you may already know, ‘diversification’ remains an essential part in the process of wealth creation. It helps in reducing overall risks and allows you to tap into the potential benefits of multiple asset classes at once. But diversifying into numerous asset classes is easier said than done. You need to possess expertise in all the assets where you want to invest.
Additionally, you also require access to such investments which is another tedious task. Certain investments are generally inaccessible to ordinary investors but even if you are able to gain access, there is a problem of liquidity and price discovery.
Looking at the above problems, you might think diversification is ‘too much work.’ But you are wrong. Hedonova offers a one-stop solution for all investors who are looking to invest in a variety of alternate assets.
What is Hedonova?
Hedonova is a professionally managed alternative investment hedge fund that invests in more than 12 asset classes, all under the same fund. The assets managed under the fund are spread across numerous countries and geographies that help to reduce various types of risks like currency risk, regulatory risk, macroeconomic risk, etc.
Managed by a team of highly experienced and skilled individuals, the primary goal of Hedonova is to offer the freedom to invest in any asset class in any part of the world.
Unlike the usual hedge funds that deal exclusively with equities, commodities, and debt instruments, Hedonova is a unique alternative investment fund that gives you the option to invest in non-traditional investments such as Art, Wine, NFTs, and much more.
What is an Alternative Investment Fund? You may ask.
An Alternative Investment Fund is similar to a mutual fund in some properties. Here, the fund house collects money from the investors and invests the collected pool into various asset classes. Unlike mutual funds which are limited to a single asset class for example Equity or Debt, an AIF (Alternative Investment Fund) enjoys the liberty to invest in any asset that can benefit its investors.
How is Hedonova different?
Hedonova aims to offer its services to the masses and not just to select wealthy individuals. To achieve this, they have implemented several measures. Some of them are.
1.Affordable to small investors
Typical hedge funds and other alternative investment funds have a steep ‘minimum ticket size’ (minimum investment required) which can range from few thousand dollars to millions of dollars.
But Hedonova has made investing in alternative assets affordable by keeping a minimum investment value of $1,000 or about Rs 75,000. However, once you have invested a minimum of Rs 75,000, there are no minimums after the first investment.
2.No lock-in or exit loads
Once you have invested, you are offered blocks of the fund that are similar to units in a mutual fund. The price of these blocks is updated on a daily basis based on the performance of the fund. Additionally, these can be sold back to Hedonova, if you want to exit your investments. There are no exit loads or lock-in period, applicable to the fund which makes it highly convenient and liquid for you.
3.Non-correlated to the stock markets
The investments made by the fund are not correlated with the stock markets. Therefore, even if the stock markets fail to provide any returns for a substantial period of time, your investments will be unaffected. Since the inception of the fund in 2020, it has been able to beat the S&P 500 index by a fair margin.
With a remarkable CAGR of 53.3% in the given time frame, it was able to outperform the S&P index by a whopping 15.4%. This makes it extremely successful when compared to traditional equity investing. Moreover, its targeted return percentage is quite high at 25 to 30% which is considerably higher than what the stock market offers in the long term.
4.Low fees
Finally, the management fee charged by the fund is also nominal at just 1%. Apart from this, the fund charges a 10% performance fee to its investors, which is applicable on the gross profits that the fund is able to generate. This makes it cheaper by almost 60% when compared to other hedge funds in the industry.
Where is your money invested?
By investing in Hedonova, you are exposed to over 12 asset classes spread across various countries that offer excellent diversification and capital appreciation opportunities. Apart from investing in listed equities, Hedonova invests in a range of asset classes which might be extremely difficult to gain exposure to, for an individual investor. Some of them are mentioned here.
1. Art (paintings)
2. Commercial Real Estate (Industrial warehouses)
3. Startups
4. NFTs and cryptocurrencies
5. Agricultural Real Estate (Farmlands)
6. Equipment Financing
7. P2P lending and Student loans
8. Listed domestic and international equity
9. Litigation Finance
10. Wine
So, your money is invested into a variety of asset classes for additional returns and lower risks.
Who is Hedonova good for?
If you are a high-risk investor who is looking to diversify into various asset classes through an alternative investment fund, Hedonova is the ideal option for you.
Having more than 12 asset classes, you will not only diversify your investments, but also gain exposure to some of the most valuable and rare assets in the world.
These include valuable paintings, precious and rare wine, NFTs, high-growth startups, etc. Another added benefit of selecting Hedonova is the low-ticket size ($1,000 or Rs 75,000), affordable management fees (1%), and high expected returns.
However, you should remember that the fund is relatively new and does not have much past data to rely on. Therefore, invest in the fund after you have performed your due diligence and when you have a long-term view.