What is an alternative asset?

An alternative asset is an item that has intrinsic value, but is not traditionally considered a financial asset. How Does an Alternative Asset Work? Alternative assets are best defined by their absence from the capital markets. Their valuation is subjective and based primarily on popular demand.

What are the different types of alternative investments?

Common forms of alternative investments include real estate, commodities, cryptocurrency, and collectibles. Most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of their complex nature, lack of regulation, and degree of risk.

Who can buy alternative assets?

Buying many types of alternative assets has historically been limited to financially sophisticated investors like institutions or high-net-worth individuals deemed accredited investors by the Securities and Exchange Commission (SEC).