Managed Futures allow you to invest in the volatility of a particular asset class with the safety of a diversified portfolio. By providing this option, investors can optimize risk-return trade-offs as part of a managed futures portfolio. Asset classes like currencies and commodities are well-known for their volatility, but structured products like futures allow investors to invest in these assets without taking on all of the risk.This way, investors can enjoy the benefits of the higher return potential of these volatile asset classes without losing sleep over the risk of market movements that can affect their holdings. For the investor who wants to maximize their returns while minimizing their risk, managed futures are a great option.Managed futures allow a diversification of risk. Managed futures are a type of synthetic product that can be customized to fit your specific investment objectives.The downside to managed futures is that they do not have any direct correlation to traditional asset classes like equities and fixed income securities. This means that the performance of the managed futures may not exactly mirror the performance of traditional assets, but they should produce a similar rate of return.Managed futures are a type of derivative that is similar to a stock. They're high-risk and high-reward investment products that help you diversify your portfolio.The idea behind managed futures is that they are designed to help you invest with more confidence than traditional investments, and they're typically used by investors who want their money to grow while preserving most of their principal.Adding a managed futures investment to your portfolio provides you with exposure to a unique and flexible portfolio of diverse instruments in the equity, fixed income and commodities markets. This portfolio diversification offers capital-market protection and investment flexibility in a way that is not possible with direct investments like stocks and bonds.A managed futures investment also offers the additional benefit of tax-loss harvesting, which helps to improve overall portfolio returns.
