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Alternative Investments

Related terms: accredited investor, hedge fund, private equity, venture capital, real estate

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.