Why MICs Have a Place in Every Investment Portfolio

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May 24, 2022

Building an effective and stable investment portfolio is a difficult task. With so many options for investing available, it can be challenging to determine which options are the right fit for your goals and needs. As a leading mortgage investment corporation (MIC), PHL Financial Group knows how important it is to choose the right options for your portfolio. That is why we have compiled some information to demonstrate why MICs have a place in every investment portfolio due to the benefits they provide.

3 Reasons to Add a MIC to Your Investment Portfolio

Mortgage investment corporations are a great addition to your investment portfolio due to the following benefits:

1. Less Volatile Access to the Real Estate Market

Real estate has always been a popular market for investing, though it is not always the most accessible market to get into. As housing prices continue to rise, MICs provide access to the private mortgage market without the volatility of ownership. There is also added safety with a MIC, thanks to the experts who carefully select the mortgages that comprise the fund and utilize other risk mitigation strategies.

2. Potential for Higher Yields

Another benefit to investing through a MIC is the potential for higher yields. Investors may also start seeing returns sooner thanks to the interest fees collected from borrowers. Rather than managing a rental property, investors do not have any hands-on property maintenance or managerial responsibilities, and their investment is not tied up in the market value of a single property.

While it is typically still a good idea to have a certain percentage of your portfolio in traditional investment options like bonds and stocks, these are at the mercy of public and global events that impact the market. Private investing and alternative assets like MICs can provide some shelter from these same events, giving you the potential for steady and reliable returns.

3. Enhanced Protection Through Diversification

No investment strategy is completely safe from market shifts. One of the greatest benefits of investing in mortgages is the additional security of not owning the physical property should there be market volatility. Most MICs also invest in mortgages for a variety of residential and commercial properties, providing greater protection through diversification. Risk assessment strategies used by MICs also help to reduce these risks further, providing peace of mind for your investment.

To learn more about our investing solutions or to discuss your investing goals, get in touch with the team at PHL Financial Group. We can be reached through our online contact form and will be happy to answer any questions you may have regarding our services.