What are alternative investments?

Alternative investments include private equity, venture capital, hedge funds, managed futures and collectables like art and antiques. Commodities and real estate can also be classified as alternative investments. Who Can Buy Alternative Investments?

Is real estate an alternative investment?

Real estate is also often classified as an alternative investment. An alternative investment is a financial asset that does not fit into the conventional equity/income/cash categories. Private equity or venture capital, hedge funds, real property, commodities, and tangible assets are all examples of alternative investments.

Should you invest in alternative investments?

Therefore, investors most often turn to alternatives to potentially help diversify an investment portfolio and reduce overall portfolio risk. Since alternatives are considered riskier investments, they often have the potential for higher returns compared to traditional investments.