How to combine fixed income and alternative investments to protect your assets

Strategic investment planning enables informed decisions and sustainable growth

Balancing fixed-income investments with alternatives is an efficient approach to protecting your assets and generating consistent results over time. real estate funds, for example, combine variable income with periodic income with potential for appreciation, offering essential diversification for the portfolio.

This strategy reduces risk, protects against inflation, maintains liquidity, and contributes to better portfolio organization. This allows you to achieve financial stability without sacrificing growth opportunities.

Strategic planning across different types of investments provides a comprehensive overview of assets, facilitating more informed decisions aligned with financial objectives.

This content is not an investment recommendation.

Why diversify between fixed income and alternatives

Diversification between fixed income and alternative assets significantly reduces portfolio volatility. When one asset experiences losses, others can offset gains, balancing overall performance. Combining these assets balances security with appreciation potential, allowing capital to be protected without sacrificing growth opportunities. Thus, the strategy offers resilience across different economic cycles.

Furthermore, this approach allows investors to consciously seize opportunities across different sectors. By diversifying, they can explore real estate, technology, or commodity markets, for example, without relying exclusively on fixed income. This not only increases the chances of return but also strengthens the portfolio against specific economic shocks.

Main fixed income instruments

CDBs offer variable liquidity and predictable returns, while LCIs and LCAs are exempt from income tax and are guaranteed by the FGC (Government Fund for the Protection of Civil and Industrial Property). Tesouro Direto, in turn, is known for its security and diverse maturity dates. Strategically choosing these investments, based on your timeframe and financial goals, allows you to build a solid foundation that supports your portfolio as a whole.

The importance of using inflation-indexed and fixed-rate securities lies in the diversification within fixed income. These securities offer protection against different economic scenarios, creating the security to take calculated risks in alternative assets.

Alternative assets that can complement the portfolio

Real estate funds, multimarket funds with low market correlation, and private credit funds are examples of investments that can complement fixed income, increase diversification, and generate periodic returns. They offer exposure to markets less correlated with fixed income, which is crucial for a balanced portfolio. It's essential to analyze each asset's liquidity, volatility, risk profile, and historical performance before including it in the portfolio, ensuring that each investment contributes to the overall objective.

This exposure to alternative assets helps reduce dependence on fixed income and seize opportunities across different economic cycles. By maximizing the portfolio's total return in a controlled manner, investors can achieve a balance between risk and return.

Protection against inflation and market risks

Combining inflation-linked fixed-income assets with alternative investments offers purchasing power protection and reduces exposure to economic fluctuations. Inflation-linked securities adjust their yields as prices rise, while some alternative assets may appreciate in specific scenarios, such as rising interest rate cycles or sector expansions. Balancing low-risk securities with assets that can be subject to market fluctuations allows for portfolio stability during periods of high volatility.

It's recommended to constantly evaluate asset allocation, monitor correlations, and adjust the portfolio to protect against losses while maintaining the potential for asset growth. This proactive approach ensures that the portfolio is always aligned with financial objectives and prepared to face different economic scenarios.

Strategies to generate passive income

Selecting assets that pay periodic returns, such as real estate funds and multimarket funds, creates continuous income streams that can be reinvested or used to supplement monthly income. These returns are essential for building a portfolio that generates passive income, providing financial stability and flexibility for the investor.

It's important to calculate the real rate of return on these investments, taking into account inflation and costs, to understand the impact on passive income over time. Structuring your portfolio so that periodic returns become a stable cash flow base allows for safer and more sustainable financial planning.

Building a balanced portfolio

Defining clear proportions between fixed income and alternative assets is crucial, taking into account the risk profile, financial objectives, and investment horizon. This initial definition is the starting point for a successful investment strategy. Periodically reviewing the allocation is essential to maintain balance in the face of market or personal situation changes, ensuring that the strategy remains appropriate and efficient.

The balance between safety and return depends not only on asset selection, but also on consistency in strategy execution, continuous analysis of results, and the discipline to adjust the portfolio whenever necessary. This approach enables sustainable wealth growth, allowing investors to achieve their financial goals with confidence and security.