CategoryHierarchies.com

Alternative investments are financial assets that do not fall into traditional categories such as stocks, bonds, or cash. These investments often have a low correlation to the stock market and can include assets such as real estate, commodities, hedge funds, private equity, and collectibles. Alternative investments are typically chosen by investors seeking to diversify their portfolios and potentially achieve higher returns than traditional investments. Due to their unique nature, alternative investments may have higher fees, less liquidity, and greater risk than traditional investments.