The concept of forestry & timber investing is catching on very fast and is a form of alternative investments. The need of the hour is for diversification of a portfolio. That is one of the most effective ways of diluting risk in uncertain times when stock market investments tend to take on a very volatile form. Forestry investments offer very stable and long term returns and are diversification in the true sense of the word. They act as an anchor for a traditional portfolio and add a robustness that very few other investments can.

Answering all Questions

When an individual investor thinks of different avenues of engaging his/her money they have numerous questions and doubts. The one way of zeroing-in on the right type of investment is to make note of where institutional investors are sinking their funds. Of course, this does not necessarily mean that large investors are always on track with their investing decisions.

However, they have more experience and since their investments are so high, they tend to be a little more cautious and carry out extensive research before investing in anything. In this aspect, as per Avacade reviews, many institutional investors have been rooting for forestry investments. There are numerous reasons that add allure to this particular asset class:

• Hard Asset- Forestry investments are a very good hedge against inflation. There is a very close co-relation between the prices of timber and the overall prices in the global economy. In that aspect, timber acts as a very good hedge just as many precious metals do.

• Impressive Returns- Historically, forestry investments have provided very impressive returns. In the United Kingdom, the average annualized-return for the Investment Property Databank's UK Forestry index for ten years is 10.4%. Meanwhile, in the U.S, the National Council for Real Estate Fiduciaries in the U.S (NCREIF), the timber returns since 1987 right through to 2010 have averaged at 15% annually. In this period of time, timber has had only 3 down years in the past 47 years. That truly is an impressive record.

• High Demand- There is a very rapidly growing demand for timber in many Asian countries like China and the timber deficit in this Asian country has been growing. To a great extent, this China-trade factor will drive the demand for timber from western countries like the U.S and the U.S.

• Independent of Inflation- Forestry investments are not really correlated to global equities. Very simply, trees are not affected about rises and drops in the global stock indexes and the sources of their returns are very different. Though the course prices of timber can fluctuate depending on economic conditions & the species of trees, investors have a considerable amount of flexibility in terms of when they harvest their timber.

If for whatever reason the price of lumber in any particular year is low, an investor has the choice to withhold harvesting and wait till such a time that prices are more in their favor. In short, Avacade reviews have indicated that forestry investments provide resilience, flexibility and long-term value that very few other investments offer.

Frederick Brown is a financial expert who has vast kn`owledge in the field of investment. He suggests investors to invest in fine art, which has been indicated as a highly valued asset in the present times by Avacade Reviews.