Financial advisors commonly recommend adding real estate to a traditional stock and bond portfolio because it generates stable income and is relatively insulated from economic downturns. Relative to diversified real estate holdings, diversified music royalty assets have much higher returns and only slightly more risk. Furthermore, given the ongoing growth in music streaming services such as Spotify and Apple music, music royalties offer the potential for growth and value appreciation. Lastly, during the COVID economic crisis, streaming royalties declined by only three percent (3%) on average, far less than most other asset classes.

An additional benefit of investing in music royalties is that their returns are uncorrelated to the returns of other traditional and alternative asset classes. The addition of music royalty assets to almost any investment portfolio should both enhance income and reduce overall portfolio risk.