Our experts answer readers’ investing questions and write unbiased product reviews (here’s how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
- Alternative investments include things like real estate, commodities, collectibles, and art.
- These investments move independently of other financial markets, but they are less accessible.
- SoFi is making alternative investments more accessible with a variety of investment funds.
Any smart investor is always thinking about new ways to diversify their portfolio. But after running through a list of traditional methods, from ETFs to bonds, you might feel like you’ve hit a ceiling with your investment opportunities. However, SoFi, a one-stop shop for digital financial services, has a solution.
SoFi just launched an alternative investment fund, where everyday investors are now able to access select alternative investment funds, mutual funds, and money market funds.
If you’re looking to diversify your investment portfolio, here’s why you might want to consider SoFi’s alternative investments in 2024.
SoFi makes investing in alternative assets accessible
If you haven’t heard the term before, alternative investments are financial assets that aren’t stocks, bonds, or cash. Common types of alternative investments could include real estate, commodities, and collectibles, like art.
The catch is that many alternative investment opportunities are only available to the wealthy, as they require a large amount of upfront capital.
However, SoFi is now giving you access to these alternative investment funds, which may help you build your wealth over time and diversify your portfolio with a new asset class.
SoFi gives you access to well-known alternative investment funds, including ARK Venture Fund, Carlyle Tactical Credit Fund (CTAC), KKR Credit Opportunities Portfolio, Franklin Templeton’s Clarion Partners Real Estate Income Fund (CPREX), and Franklin BSP Private Credit Fund (FBSPX), as well as 6,000 different mutual funds.
Alternative investment funds diversify your portfolio
Right now, your portfolio might be filled with traditional investments that are easily accessible, like stocks or bonds, and don’t require a minimum amount of capital. But often, the key to growing your portfolio and building wealth over time comes down to diversifying your assets.
SoFi’s alternative investment funds let you tap into a diverse mix of investing opportunities, including private credit, real estate, and pre-IPO companies.
There’s no minimum to get started as an investor on SoFi’s platform. Each of these alternative investment funds has its own set minimum, some as low as $500.
These assets have the potential to yield uncorrelated returns
Since alternative investments typically move independently of stocks and bonds, under the same market conditions, they have the potential to yield uncorrelated returns. This helps you spread risk, and it can also potentially reduce how much your portfolio is affected by the market’s highs and lows.
While there’s never a guarantee, alternative investments could even lead to higher returns over time, because their growth is related to many factors beyond just the volatility of the market.
SoFi helps you take the next step on your long-term wealth-building plan
If you’re thinking of ways to invest now for the future, SoFi’s alternative investment funds may help diversify your retirement portfolio. These types of funds have historically offered high returns over long periods of time, making them an option worth considering for an investor eager to build wealth.
When you’re considering a new investment, it’s helpful to have support. SoFi launched an education hub to help investors understand the basics of alternative investments, how they work, and ways they fit into a portfolio.
Plus, SoFi members have complimentary access to certified financial planners® so they can have a professional by their side making sure they make the right investment moves for the personalized goals.
SoFi Alternative Investing
Account Minimum
$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading
Fees
0% for active trading and automated investing
- No minimum to start investing
- No account or trading fees, and low fees to own funds
- Access to Certified Financial Planners at no additional charge
- IPOs available
- SoFi 1% IRA match
- No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
- No option for stop-loss orders when actively investing. SoFi’s active investing account only uses market orders
- Currently only available to US residents
Product Details
- Promotion: Get up to $1,000 in stock when you fund a new account.
- App store rating: 4.8 iOS/4.1 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
Disclosures:
Mutual Funds (MFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or clicking the prospectus link on the fund’s respective page at sofi.com You may also contact customer service at: [1 (855) 456-7634] Please read the prospectus carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor’s risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.
Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
SoFi Checking and Savings
Earn up to a $300 bonus with qualifying direct deposits for eligible customers through 6/30/24. Earn up to 4.60% APY on savings balances (including Vaults) with direct deposit
