alternative investment

Alternative investments are financial assets that fall outside the traditional categories of stocks, bonds, and cash. They include categories like real estate, hedge funds, private equity, commodities, and collectibles, such as art or wine. These investments often aim for higher returns and may provide diversification for a portfolio, as they often behave differently than traditional assets. However, they can also be less liquid, more complex, and carry higher risks. Investors typically seek alternatives to enhance potential returns, manage risk, or take advantage of unique market opportunities.