Nearly all investors appreciate the value of diversification. We have all heard the saying, it’s not prudent to put all your eggs in one basket. The most common way to diversify is to divide your portfolio between equities (stocks) and fixed income (bonds), two asset classes that generally move in opposite directions.

Astute investors seek additional diversification by further dividing their fixed income portfolio. This is where trust deeds play a critical role. While bonds are considered “fixed income,” prices vary, sometimes dramatically. However, if you place some or all of your fixed income investment in trust deeds – the returns for which are truly fixed – you add an element of stability, thereby lowering the volatility of your entire portfolio.

Diversification aside, investors should not overlook the investment opportunities in the real estate market itself. It’s a large and vital aspect of any economy and no portfolio should be without it. You include real estate in your portfolio for the same reason you include energy stocks, or retail or technology. Overlooking key economic sectors will create gaps in your portfolio, resulting in missed opportunities and lowered diversification. Trust deeds are a convenient and sensible way to take advantage of the opportunities of real estate investing.

The income feature is attractive to investors also. Some choose to reinvest their income back into principal, while others welcome receiving regular interest payments in the mail.

Finally, trust deed investing is fully managed. Sterling Pacific handles all aspects of the process – from loan origination to payoff.

If you’d like to learn more about the many benefits of trust deed investing, please call 866-896-3605.