What do direct participation programs (DDPs) primarily provide investors?

Direct participation programs (DPPs) primarily provide investors with exposure to non-correlated assets that can offer steady returns over time. This is because DPPs typically invest in business ventures that generate income through activities like real estate or natural resource exploration, which may not move in tandem with traditional financial market conditions. By investing in these types of assets, investors often benefit from cash flow produced by the underlying investments, such as rental income or revenue from natural resources, which can be more stable and less affected by market volatility.

The nature of these assets allows for diversification in an investor's portfolio, especially during periods when traditional stocks and bonds may be adversely impacted by economic downturns. DPPs are structured to directly pass the profits, losses, and tax benefits from the underlying investments through to the investors, which can lead to steady returns, making them an attractive option for those looking for alternative investment strategies.