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The term alternative investment applies to a number of different non-traditional investments. The reason they are classified as alternative is because they are unlike the traditional brokerage securities such as stocks, bonds or mutual funds and are generally not traded on an exchange.
At Lincoln Financial Advisors, we use the classification, Alternative Investments to encompass a number of different investment vehicle types that we offer. Some include, Hedge Funds, Hedging Strategies, Futures Funds, Private Equity Funds, Private Variable Life or Variable Annuities, and Corporate Stock Services. In addition, through our alternative investment options, we offer a number of Unit Investment Trusts, 1031 Exchange and Direct Participation Programs such as REITs, Equipment Leasing, Oil & Gas and Tax Credit programs.
These investment vehicles are used by many of our clients for numerous different purposes including significant tax planning issues. In some cases, these investments have a negative correlation to traditional investments so they are used to further diversify portfolios beyond the normal asset classes to help manage risk.
Non-traditional investments or alternative investments may be subject to special risks such as illiquidity. Futures and forward trading is speculative and involves substantial risk. There is no assurance that the stated investment objectives will be met. Clients must meet specific suitability standards before investing. Suitability may vary by state. Units or shares of these types of investments may fluctuate in value so that at redemption may be worth more or less than the original amount invested. Several of these offerings are sold by prospectus; a prospectus contains complete information including risks, fee and expenses. Clients should read these carefully before investing.
Several of these programs may be for sophisticated investors only or may be limited to established accredited clients. This material is for information purposes only and should not be considered a general solicitation.
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