Understanding traditional investments vs. alternative investments can help you invest your money in a safe way that suits your unique needs as an investor. Unfortunately, some investors receive recommendations from financial advisors to invest in alternative investments that are risky, like structured products.
If you’ve lost money due to an advisor’s unsuitable investment recommendation, you may be able to file a claim for compensation. An alternative investment loss lawyer can help you pursue the damages you’re owed and offer further advice on the differences between traditional and alternative investments.
Understanding the Difference Between Traditional Investments vs. Alternative Investments
One of the main differences between traditional investments vs. alternative investments is that traditional investments often have more liquidity. That means it is easier to sell these types of securities, as trading them doesn’t require expensive fees.
On the other hand, alternative investments are often less liquid. Individuals who invest in these securities are often interested in investments with a longer investment horizon or a longer duration between buy and sell.
Lastly, alternative investments tend to be more risky than traditional investments. Investing in these types of securities requires a great deal of knowledge and experience. While both types of investments have pros and cons, not all investors are well-suited to alternative investments.
If you inform your financial advisor that you are risk-averse, not interested in long-term investments that lack liquidity, or uninterested in alternative investments for another reason, they must provide investment opportunities that are in line with your goals. If you’ve lost money because an advisor recommended an alternative investment, you may have grounds for a claim.
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Types of Alternative Investments You May Want to Avoid
Understanding the difference between traditional and alternative investments can help you make choices that align with your goals. If you’re the type of investor who is focused on opportunities that are low-risk, liquid, and traditional, there are several types of investments you might want to avoid, such as:
- Hedge funds
- Private equity funds
- Real estate investment trusts
- Structured product
- Commodities and futures
These are only a few examples of the alternative investments you may want to avoid if you’re more focused on safer, more traditional investments. If you’ve incurred losses because your financial advisor recommended an alternative investment that didn’t line up with your goals, a broker misconduct lawyer can pursue compensation for your losses.
How a Lawyer Can Help You Recover From Alternative Investment Losses
When you lose money due to an advisor’s unsuitable recommendation, it can damage your finances and make you hesitant to pursue future investments. The good news is that a skilled unsuitability claims lawyer can pursue the outcome you need to replace your losses.
A skilled attorney can help you file what’s known as an arbitration claim. They’ll file your claim with the Financial Industry Regulatory Authority, which is the body that oversees most disputes between financial advisors and their clients.
An experienced securities arbitration lawyer can ensure your claim is as strong as possible, giving you your best chance at receiving a fair resolution. Reach out to an attorney today to learn more about the claims process and the differences between alternative investments vs. traditional investments.
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Compensation You Could Receive From an Arbitration Claim
When you work with an attorney to pursue damages for your investment loss, they’ll investigate your case and determine which forms of compensation you’re owed. Depending on the losses and challenges you’ve been burdened with due to your financial advisor’s poor recommendation, you could receive any of the following damages from a winning claim:
- Compensatory damages
- Interest
- Punitive damages
- Cessation of contract
- And more
These remedies can help you replace your alternative investment losses and help you move past this unfortunate time in your investment career. Reach out to an attorney today to discuss alternative investments vs. traditional investments and learn more about the compensation you could receive from a claim.
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At Meyer Wilson, we know how discouraging and frustrating it can be to incur losses due to an advisor’s unsuitable recommendation. That’s why your team is here to pursue the compensation and justice you need to move forward with your investment career.
Our firm has over 75 years of combined experience and has won over $350 million for investors like yourself. Contact us today to schedule free consultation with a skilled attorney, learn more about the differences between traditional investments vs. alternative investments, and take the first step toward your settlement.
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