Lower Risk Investing

Mortgage Investments: A Lower Risk Investment Vehicle

  • Mortgage investments are not directly correlated to public equity markets. This is important because public markets (equities and bonds), unlike the New Haven Mortgage Income Fund (1) Inc., have inherent short term volatility due to many risk factors not controlled by investors such as company performance, speculative trading, securitization, sector cyclicality and global trends.
  • Your investment is generally protected by the “equity cushion” in the property, in which the borrower is heavily invested in subordination to our mortgage loan.

Does low risk equate to low return? Put simply, the answer is NO. Here’s why:

  • As an alternative investment strategy, New Haven Mortgage Corporation is designed to generate positive returns in any market environment because of the focus on absolute returns. These types of investments have a low correlation to equity returns. For example, a well-managed mortgage investment corporation (MIC) should continue to generate good yields even while equity markets underperform..
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