Trust Deed investing offers many investors another method of diversification to help reduce volatility in their portfolio and a way to generate additional income. Trust Deeds, secured by real tangible property, when professionally underwritten and managed, are a good investment alternative for the income-producing portion of an investment portfolio.
Historically, Trust Deeds have outperformed cash investments and exhibited less volatility than stocks, although stocks and mutual funds can offer high returns, they have greater risks. Furthermore, the return of Trust deeds has often offset the negative return on stocks during periods of market downturn. As a result, adding Trust Deed investments to an all stock portfolio generally increase’s the overall return and lowers the risk of your portfolio.
