Customary investing often focuses upon mutual funds, bonds, and stocks. Alternative investments arrive, as many Canadians search for different means to create wealth during today’s volatile markets.
These asset classes that are outside of public markets offer to investors access to unique opportunities and often to better risk-adjusted returns. This guide is for you if you seek to diversify and protect your capital from market fluctuations.
Most opportunities are open to accredited investors under National Instrument 45-106. See related article for in-depth review – Accredited Investors in Canada: Guide to Alternatives
Investor advantages
What Are Alternative Investments?
Certain financial assets are referred to as alternative investments. The usual classifications of fixed income and equities do not include these investments.| Asset Class | Typical Examples |
|---|---|
| Private Credit | Private mortgage funds, direct lending |
| Real Estate | Commercial, residential, and development projects |
| Private Equity & Venture Capital | Early-stage and growth companies |
| Hedge Funds | Long/short, market-neutral, global macro strategies |
| Infrastructure | Toll roads, renewable energy, utilities |
| Digital Assets | Cryptocurrency and related blockchain projects (highly speculative) |
Why Are Canadians Turning to Alternative Investments?
In Canada, alternative investments are growing in appeal due to several reasons.- Diversification – Low correlation with traditional markets helps smooth portfolio swings.
- Inflation Hedge – Real assets such as real estate and infrastructure tend to rise with prices.
- Consistent Income – Private credit and mortgage funds often pay regular interest distributions.
- Potential for Enhanced Returns – Active strategies can capture opportunities unavailable on public exchanges.
Spotlight on Private Mortgage Funds
Private mortgage funds within Canada are one of the most stable and accessible types of alternative investment. These funds pool capital from investors and then lend it out as short-term mortgages, usually second mortgages on residential properties in Ontario.Investor advantages
- Exposure to mortgages backed by tangible property
- Quarterly cash distributions
- Limited sensitivity to stock-market volatility
- Professional underwriting, monitoring, and transparent reporting
Ready to Explore Alternatives?
If you want to:- Shield part of your portfolio from day-to-day market swings
- Earn reliable, property-backed income
- Add real, inflation-resistant assets to your holdings
- Visit appgearcapital.com for details and eligibility
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