Skip to main content

Alternative Investments

Definition

Alternative investments are assets outside of traditional categories like stocks, bonds, and cash. This includes real estate, private equity, hedge funds, commodities, and digital assets such as cryptocurrencies and non-fungible tokens. They are often sought for their potential to offer diversification and uncorrelated returns relative to conventional markets. Their inclusion in portfolios can introduce novel risk-return profiles and require specialized knowledge for proper evaluation and management.