What are Alternative Investments?
Alternative investments refer to non-traditional assets such as private equity, hedge funds, real estate, and commodities. Unlike stocks and bonds, they offer diversification, potential higher returns, and lower correlation to public markets, making them a key strategy for family offices and institutional investors.
Different Types of Alternative Investments
Key types include:
- Private Equity: Investments in privately held companies with long-term growth potential.
- Hedge Funds: Actively managed funds using diverse strategies to generate returns.
- Real Estate: Physical property investments for income and appreciation.
- Commodities: Tangible assets like gold, oil, and agricultural products.
- Collectibles & Art: High-value assets such as fine art, wine, and rare items.
These assets help investors diversify portfolios, hedge against inflation, and access unique growth opportunities.