Side-by-side comparison of risk, return, and key characteristics to help you make informed investment decisions.
| Characteristic | Private Equity | Real Estate |
|---|---|---|
| Risk Level | Medium-High | Low-Medium |
| Minimum Investment | $500,000 | $100,000 |
| Liquidity | Illiquid (7-10 years) | Semi-liquid (REITs) to Illiquid |
Avg Annual Return | 15.7% | 6.6% |
Volatility | 14.2% | 8.3% |
Sharpe Ratio | 1.35 | 1.58 |
| Tax Treatment | Long-term capital gains | Varies by structure |
| Best For |
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Higher potential returns typically come with increased volatility and risk. Consider your risk tolerance and investment timeline when selecting asset classes.
Combining multiple asset classes can reduce overall portfolio risk while maintaining attractive returns. Consider allocating across different risk profiles.
Illiquid investments often offer higher returns but require longer commitment periods. Ensure your portfolio maintains adequate liquid reserves for near-term needs.