Alternative investments are type of assets that fall outside traditional investment opportunities. they are “non-correlated assets.” They don’t fall into one of the conventional investing methods like stocks. Alternative investment examples include specialist funds, private equity, international real estate and tangible assets such as collectables.
Many investors turn to these investments because their performance doesn’t follow the other asset classes. They offer the chance to diversify. Over time, a diverse portfolio can help minimise overall risk and increase long-term income. Because the price of these assets moves in different directions than other investments, they may be a way to hedge against market downturns.