"An attractive core holding to provide uncorrelated, superior risk adjusted returns"
 

If investors weren’t already cognizant of the need for a diversified investment portfolio, after the recent “great correction” they most certainly are now. The most common way people diversify their portfolios is between equities (stocks) and fixed income (bonds), two asset classes that generally move in opposite directions.

However, astute investors seek additional diversification by further dividing their fixed income portfolio. This is where trust deeds play a critical role. While traditional bonds are considered “fixed income,” prices vary and sometimes dramatically so. However, if you place some or all of your fixed income investment in trust deeds – the returns for which are truly fixed – you add an element of stability, thereby lowering the volatility of your entire portfolio.

Diversification aside, investors should not overlook the investment opportunities in the real estate market itself. It’s a large and vital aspect of the economy and no portfolio should be without it. You include real estate in your portfolio for the same reason you include energy stocks, or retail or technology. Overlooking key economic sectors will create gaps in your portfolio, resulting in missed opportunities and lowered diversification. Trust deeds are a convenient and sensible way to take advantage of the opportunities of real estate investing, with much less risk and volatility than just purchasing the underlying asset.

The current income feature of trust deed investing is often a big part of what attracts investors. Although some choose to reinvest their income back into principal, many others rejoice in receiving monthly interest payments in the mail.

While trust deed investing is a more niche investment segment than many of its alternatives, Rama Capital Partners bridges that gap for its investors by managing all aspects of the process – from loan origination to payoff, providing a true seamless investment experience for our investors.

 

Rama Capital Partners CFL# 603 H047
Rama Fund CFL# 603 H064
Rama Capital Advisors DRE# 018221572
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