Fears of a stock market falls have precipitated a flood of new capital guaranteed investment products on the market. In the current economic climate of low interest rates and uncertainty on global markets, investments in the following funds provides the opportunity to diversify and balance a traditional portfolio through investments which do not rely upon the continued growth of stock, property and bond markets.

The main vehicle for alternative investments are hedge funds and managed futures. Hedge funds have earned a reputation for risk in the media; in some cases deservedly so. The vast majority of the world's 8,000 or so hedge funds, however, seek to make consistent returns from a variety of specialist strategies. Their aim is to reduce volatility and thus risk, and produce absolute returns, i.e., make profits whatever the direction of the markets. Managed futures traders, trading in commodities, currencies, metals, bonds and equity indexes, while taking some directional bets, also seek to hedge their overall exposure. As a group, hedge funds and managed futures outperform mutual funds.

A further development on this theme is a fund of funds, where a fund manager invests into several hedge funds or managed futures programs. This could be for one of two reasons: to gain access for people of more modest means to hedge funds that are normally only, available to high net worth individuals (some hedge funds require US$5m as minimum entry), and/or to construct a strategy made up of hedge funds/managed futures with negative correlations to each other, trading in different markets and with different styles, so that the investment is fully diversified and the volatility further reduced.

Some fund of fund investments come with a capital guarantee from a major bank. The hedge funds within the investment trade independently. The bank promises to repay your entire capital after an agreed period, for example five years. Whatever profits your investment in the hedge funds have made in that period are added to your principal. You thus have the possibility of equity-type returns, but with much less volatility, and the security of cash.

The problem is which are the ones to choose . . Banner Japan has been helping Tokyo’s international investors since 1979. So if you are you looking for a secure, low risk environment for your investments and want a fund with potential to provide higher returns than bank or building society deposits without the volatility normally associated with equity type investments -- With anticipated returns, net of all charges, US Dollars 10% to 15% pa. +Plus -- click the links on the left for the best options currently available.

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