The Prism Fund is designed to provide exposure to<\/span>\u00a0various asset classes, seeking to create income and capital appreciation for investors.<\/p>\nAsset investment allocation emphasizes income-generating opportunities across several different categories, including fixed-income instruments or cash flow-backed investments like real estate equity shares, for example.<\/p>\n
Key elements of the Prism include:<\/em><\/p>\n-Quarterly distributions<\/strong><\/p>\nDistributions are set to be made every quarter and will be based on the authorization of the Board of Directors.<\/span><\/p>\nThe benefits of reinvestment accrue via a Dividend Reinvestment Program (DRIP). Dividends get automatically reinvested into more shares.<\/span><\/p>\nPrism will be closing down in the next few years. When the Fund shuts its doors in March of 2024, all asset will be sold, with all profits being distributed among investors who held their investments during that time frame and getting another chance to invest in the next Prism fund.<\/span><\/p>\n-Transparent Fee Structure<\/strong><\/p>\nThe management fee is 1.5% per year, with no load or redemption fees charged on invested assets and expenses only applied when money has been put into the market.<\/span><\/p>\n-Limited Liquidity<\/strong><\/p>\nEach quarter the Fund offers to buy back shares from existing investors, subject to approval by the board, and limitations are written in its prospectus.<\/span><\/p>\nYieldStreet Wallet<\/span><\/h3>\nYieldStreet wallets are an investment account that\u2019s insured by the Federal Deposit Insurance Corporation (FDIC). The interest rate on these accounts typically remains very low.<\/span><\/p>\nYieldStreet\u2019s wallet account is an attractive way to fund retirement. With this service, you can invest in IRAs without worrying whether money will be taken out before maturity.<\/span><\/p>\nYieldStreet Pros and Cons<\/span><\/h2>\n\n\n\n| YieldStreet Pros<\/td>\n | YieldStreet Cons<\/td>\n<\/tr>\n<\/thead>\n |
\n\n\u2705 Transparent Fees<\/strong>: YieldStreet has a very transparent fee structure that\u2019s easy for investors to understand. With the fees broken down into their essential parts, investors can see exactly how much it will cost. These include:<\/span><\/p>\n\n- sales charges, <\/span><\/li>\n
- management costs, <\/span>and <\/span><\/li>\n
- trading costs.<\/span><\/li>\n<\/ul>\n
So there\u2019s no confusion about what your money is going through before getting where it\u2019s supposed to go. This helps cut back on some hidden expenses while also ensuring more capital goes towards actually producing returns.<\/span><\/p>\n<\/td>\n \u274c Higher Risk<\/strong>: Collateralized debt obligations are investments with a higher risk of default, so if you invest with the understanding that there\u2019s a chance your money may not come back, then this is the right platform for you. Since the platform curates investment opportunities, the chances of default are low. However, even without default, collateral may lose value.<\/span><\/td>\n<\/tr>\n\n\u2705 Low Minimum Investment<\/strong>: The minimum investment is $500, which means you don\u2019t have to be a millionaire to get started. This makes it easier than ever before for anyone and everyone with small amounts of funds available to put their savings towards investments.<\/span><\/td>\n\u274c Accredited Investor Selections<\/strong>: YieldStreet has many investment opportunities available only to accredited investors. If you\u2019re not an accredited investor, you\u2019ll need to look into the Prism fund to find options available. The criteria for accredited investors are the same as SEC guidelines, and you should be making a minimum of $200k per year.<\/span><\/td>\n<\/tr>\n\n\u2705 Multiple Assets<\/strong>: YieldStreet is one of the few platforms that offers investors access to various assets. This platform invests in everything from real estate, legal, finance, art, and marine assets, so you can diversify your portfolio with ease.<\/span><\/td>\n\u274c IRA Limitations<\/strong>: If you want to open an IRA, there are some limitations. Unlike other platforms that integrate with various third-party IRA custodians, YieldStreet can only connect to your IRA if it\u2019s held by the same custodian they are using. This means you\u2019ll have to open an account and only invest through YieldStreet if you want a self-directed IRA.<\/span><\/td>\n<\/tr>\n\n\u2705 Short Term Options<\/strong>: YieldStreet has short-term investment options that are available for customers with low-risk tolerance. This makes it easy to put your money down in ways where you can get out quickly if needed without compromising on the returns at large.<\/span><\/td>\n\u274c Multi-Year Commitment<\/strong>: Many opportunities found on YieldStreet are long-term investments, so investors will need to commit for at least two years. To cash out early, it\u2019s best to invest elsewhere.<\/span><\/td>\n<\/tr>\n\n\u2705 Proven Scalable Platform<\/strong>: YieldStreet investors have invested just over $1.9 billion on the platform.<\/span><\/td>\n\u274c Multi-Year Commitment<\/strong>: The investments through YieldStreet can be illiquid, which means they\u2019re not as easy to turn into cash without penalty. This is especially the case with real estate and other physical assets that take time to sell or liquidate, so this platform isn\u2019t for you if you need your money quickly.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nYieldStreet Fees<\/span><\/h2>\nInvestors can expect to pay 1%-4% for any open position with an annual management fee. This is competitive compared to other platforms, but it\u2019s still worth looking into as there may be less risk involved in this type of investment than in others.<\/span><\/p>\nYieldStreet and Taxes<\/span><\/h2>\nThe Prism Fund, which is available to all non-accredited investors, uses the 1099-DIV tax form. This is similar to the tax associated with stock index funds and ETFs.<\/span><\/p>\nAll investment products will receive a 1099-DIV or K-1 tax form at the end of every tax year.<\/span><\/p>\nIs YieldStreet Reliable?<\/span><\/h2>\nThe Better Business Bureau has given YieldStreet an A+ rating. When a company is evaluated, they use this grade range to determine if their customer service stands out from other businesses in its industry that provide similar services. Having been rated A+, investors can take this is as a great sign of customer service.<\/span><\/p>\nWhile this is a good indicator of reliability, the firm has not been around for very long, so its track record is limited. YieldStreet was founded in 2015, and it\u2019s still growing which means that many clients haven\u2019t had their investments reach fruition.<\/span><\/p>\nIt\u2019s essential to perform your own due diligence when choosing an investment platform, whether it\u2019s YieldStreet or any other company you\u2019re considering.<\/span><\/p>\nIs Alternative Investing Right For You?<\/span><\/h2>\nDue to its unique set of investment opportunities, YieldStreet is a good fit for investors looking for diversification and yield.<\/span><\/p>\nThere are many different types of debt investments that can offer varying levels of risk with corresponding yields, which makes it a desirable option for sophisticated investors who seek higher returns than they might get by putting their money in traditional interest-bearing accounts or government bonds.<\/span><\/p>\nInvesting in alternatives does come with an increased level of risk. Still, YieldStreet offers many opportunities to mitigate that risk by pursuing legal action in the event of a borrower defaulting or ensuring collateral per each investment.<\/span><\/p>\nHowever, it is essential to know that even with these mitigation tactics to lower risk, it\u2019s still possible in rare cases that an investor may lose out on their principal investment.<\/span><\/p>\nA relatively new (since 2015) product, YieldStreet Investments offers higher returns with higher risk for those looking to diversify their portfolio. It is important to bookmark that investments with YieldStreet are illiquid and may take months to receive distributions, so YieldStreet is an excellent option for those with more advanced investment knowledge or with an already sizeable portfolio who don\u2019t need cash in the immediate future. Those who are risk-averse or just starting in investing may want to consider an alternative investment option with a lower risk profile.<\/span><\/p>\nThe main advantages of investing in alternatives are:\u00a0<\/span><\/p>\n\n- Diversification<\/strong>: YieldStreet offers many different types of investments and options to choose from.<\/span><\/li>\n
- Suitability<\/strong>: YieldStreet can be a good fit for those with more advanced investment knowledge who don\u2019t need their money urgently, as the platform is illiquid. This helps to mitigate risk by ensuring that investors do not have access to their principal until it has been paid out.<\/span><\/li>\n
- Higher Profits<\/strong>: Alternatives are known for having higher yields than more traditional investment opportunities.<\/span><\/li>\n
- Seasoned Investors<\/strong>: Alternatives investments tend to be ideal for those who already have significant knowledge about investing who are looking to diversify their portfolio.<\/span><\/li>\n
- Access to unique investments<\/strong>: Access to debt investments that the average person might not have a chance to invest in otherwise.<\/span><\/li>\n<\/ul>\n
The Future of YieldStreet<\/span><\/h2>\nThe company has already positioned itself as a leader in the alternative investment market and continues to grow at an impressive rate. <\/span><\/p>\n | | | | | | | | | |
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