Alternative Investments
Alternative investments encompass non-traditional assets such as private equity, hedge funds, commodities, and real estate. These investments offer diversification beyond stocks and bonds and are typically less liquid. They are popular among institutional investors looking for higher returns or uncorrelated assets. However, they often come with higher risk and require specialized management.
Key Takeaways
- Include non-traditional assets like private equity and real estate.
- Provide diversification beyond stocks and bonds.
- Popular among institutional investors for higher returns.
- Higher risk and less liquid than traditional investments.
