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Journal : Advances in Economics

Diversifying Portfolios: Exploring Investment Strategies and Alternative Assets in Modern Markets Syahputra, Rama
Advances in Economics & Financial Studies Vol. 1 No. 3 (2023): June - September
Publisher : Yayasan Pendidikan Bukhari Dwi Muslim

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60079/aefs.v1i3.217

Abstract

This study aims to explore investment strategies and alternative assets in modern finance to provide insights for effective portfolio management. The research design encompasses a comprehensive literature review analyzing theoretical frameworks, empirical evidence, and practical implications. Findings reveal the historical performance and risk characteristics of traditional investment instruments and alternative assets. Stocks display higher returns but also higher volatility compared to bonds, while alternative assets demonstrate potential for portfolio diversification. However, challenges such as liquidity constraints and regulatory uncertainties exist. The discussion emphasizes the importance of adopting a diversified approach to portfolio management, leveraging both traditional and alternative assets to achieve optimal risk-adjusted returns. Incorporating environmental, social, and governance (ESG) factors and leveraging financial technology (fintech) innovations are identified as strategies to enhance portfolio resilience and sustainability. The implications suggest the need for investors to adapt their strategies to navigate the complexities of today's financial markets effectively, staying agile and proactive in managing risks while seizing opportunities.