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Managing a diversified portfolio of investments might be compared to tending to a garden full of different plants. A successful garden is the result of more than simply hard work; you also need the appropriate supplies, resources, and equipment.
Having the status of an accredited investor expands the options open to you as an investor, including those that are normally off-limits to the general public.
Where can an accredited investor find investments that meet their needs?
If you’re an accredited investor, you can diversify your portfolio with greater ease thanks to the increased access you have to otherwise restricted investments like equity-linked notes, selected investment-grade bonds, and structured products.
Regardless of the state of the market, you can keep putting money away thanks to these alternative investment products and rules. This is the primary distinction between the onboarding process for accredited investors and that for retail investors. Accredited investors can invest in DBS funds such as the DBS I.D.E.A. fund and the DBS CIO Barbell. Note that both of these are DBS-developed strategies and product solutions.
What It Means to Be an Accredited Investor
Potential benefits and drawbacks of becoming a qualified investor
Being an accredited investor grants you access to restricted investments, similar to having the right gardening tools for a variety of soil types, so that you can invest in any market environment, bull or bear.
That’s because regulators view accredited investors as experienced pros who can look out for their own interests with minimal oversight because they have the knowledge and means to do so.
As a result, in order to gain access to more advanced investments, these investors will not be afforded the same level of regulatory protection as non-accredited investors. If, for instance, the producers of said products are exempt from producing a corresponding prospectus, then investors can more swiftly put their money into said products.