If you don’t know where to start the alternative investments discussion, try these conversation starters.
1. For clients who assume hedge funds are high-risk: “A lot of people assume hedge funds are ultra-risky. Fact is, many hedge funds are just the opposite: they’re designed to reduce risk for conservative investors through a variety of hedging strategies.”
2. For clients who think alternatives are only for the ultra-rich: “You know, there was a time when you needed to be extremely wealthy to access hedge funds and private equity. That’s not the case anymore.”
3. For a client who may be suited to private equity investing: “It’s virtually certain you won’t need to touch this $[INSERT AMOUNT] for five or 10 years. We can make it work a little harder if we move it into [XYZ] private equity fund.”
4. For clients interested in private equity: “There are more ways of accessing this world than you may think. For example, you don’t need to invest directly in a private business—you can buy into a private equity fund that has stakes in multiple private companies, giving you more safety through diversification.”