Alternative Income Fund 1


The Alternative Income Fund 1 uses a proprietary methodology using broad based S&P500 and Dow Jones index options to generate income with a risk-profile similar to US Treasuries. This strategy successfully overcomes limitations and drawbacks of traditional fixed income investing in bank CDs, US Treasuries, Muni/Corporate bonds and preferred stocks.

Summary of Benefits

Safety of Principal:

Income with yield and risk comparable to US Treasuries.

No upper limits:

Bank CDs are insured only up to $250,000 by FDIC

Liquidity :

The investment is liquid unlike CD maturity terms.  US Treasuries can suffer loss of value if liquidated before maturity.

Taxation :

60% of the yield is treated as long term capital gains and 40% of the yield is treated as short term capital gains.  CDs or treasury yields are treated as ordinary income for tax purposes.

Redemption and laddering : 

Optimal holding period for this investment is a month to a quarter.  In a rising rate environment, investor can re-invest at the prevailing US treasury rate every month or every quarter.  This achieves natural laddering effect.  Other fixed income investments suffer a loss of value in a rising rate environment.