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The key point of any investment is to generate healthy returns in the long run. While typical investment options like stocks, bonds and cash have reigned supreme over the years, the rise of alternative investments has sought to disrupt the status quo. Taking advantage of this increased curiosity, companies like Hedonova have created mutual funds of alternative investments that include asset classes like art, wine, NFTs, blockchain, real estate and others to satisfy market demand. Additionally, Hedonova’s Delaware LLC structure enables a 100 per cent tax pass-through, which essentially allows for a single-taxation system.

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Fuss-Free Investment

With such a wide range of possible investment themes, picking and choosing a particular asset class can be tedious for those just starting out in their investment journey. This is where Hedonova comes into play — the convenience it can provide for its clients is a godsend. The company strives to simplify the investing process for its clients, knowing that they are busy with their daily hustle and learning about alternative investments can be time-consuming due to it being a new asset class. Furthermore, the company aims to cut down on the hassle of contacting multiple agencies to invest in each individual asset. For Europeans, investing has never been easier as Hedonova accepts cashless payments in Euros and through SEPA transfer for a hassle-free process. Even for the most seasoned investors, having a company like Hedonova can help to expedite the investment process. Its fuss-free nature makes Hedonova a top pick for any investors.

High Returns

Image: Hedonova

Getting good returns is fundamental to any investment portfolio. Traditional options like stocks and bonds are preferred because of its established performance. The S&P 500 index fund’s compounded average annual growth over the past 25 years (1995-2021) is 13.2 per cent each year. But compared to the appreciation of contemporary art over the same period, art outperformed the S&P 500 with a 14.1 per cent growth. If we included other asset classes like NFTs, the potential for the mutual fund could grow even more. The high returns these alternative asset classes provide is what makes it attractive to today’s investors who wish to diversify their portfolios.

Looking at Hedonova’s mutual fund in closer detail, investors would be pleased to know that it achieved a net return of 38.7 per cent IRR. The CAGR for the fund stands at 33.8 per cent. More interestingly, Hedonova’s portfolio of alternative asset classes has a low correlation to the stock markets, its market correlation hovers around 0.8 and this means that the mutual fund is well diversified across asset classes, geographies and risk profiles. For investors, it would mean that the fund does not move in tandem with the financial market, which is a salient point to consider when one is looking to protect against potential downside risks.

Potential to own a piece of the investment

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Another boon in using Hedonova is that investors get to earn a piece of their investment. The concept is similar to the burgeoning business concept of fractional ownership, similar to how investors own shares of a company. At Hedonova, clients can invest in their favourite music artist and in return, they get to own certain rights over the music royalties and earn money each time the music is played. Music royalties are potentially an infinite cash flow generating asset because music is not perishable.

The possibilities are endless with alternative investments and are not just on the above asset classes but include opportunities for investing in areas that may not be available through other investment strategies. Get started on your journey in alternative investment with Hedonova, and get ready for that bucket of gold.

To learn more about Hedonova, click here.


Instagram: @hedonova

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