alternative investments
Beyond stocks, bonds
Alternative investments are assets outside traditional categories like stocks, bonds, and cash.
The term covers hedge funds, private equity, real estate, commodities, art, wine, and cryptocurrency—anything investors might hold to diversify a portfolio or seek returns uncorrelated with public markets.
She moved 20% of her portfolio into alternative investments.
Often shortened to "alts" in finance.
Capital for unlisted companies
- venture capitalStartup growth financing
- hedge fundsPooled alternative investment vehicles
- real estateLand and its structures
- commoditiesTradeable raw materials
cryptocurrency · art · wine · collectibles · antiques · rare coins · stamps · classic cars
Land and its structures
- goldElement seventy-nine
- silverLustrous white precious metal
- artHuman creative expression
- antiquesValuable old items
wine · diamonds · farmland · timberland · classic cars · collectibles · coins · stamps
Expanding into varied areas
- risk managementIdentifying and minimizing threats
- hedgingNoncommittal maneuvering
- arbitrageExploiting price discrepancies
- short sellingSelling borrowed securities
leverage · derivatives · options · futures · capital preservation · correlation · due diligence · rebalancing
Possessing considerable financial assets
- limited partnershipVenture with protected investors
- illiquidNot easily converted to cash
- management feeCost for professional oversight
- institutionalOf formal establishments
private equity
Capital for unlisted companies
- venture capitalStartup growth financing
- hedge fundsPooled alternative investment vehicles
- real estateLand and its structures
commodities · cryptocurrency · art · wine · collectibles · antiques · rare coins · stamps · classic cars · farmland
real estate
Land and its structures
antiques · wine · diamonds · farmland · timberland · classic cars · collectibles · coins · stamps · luxury watches
diversification
Expanding into varied areas
- risk managementIdentifying and minimizing threats
- hedgingNoncommittal maneuvering
- arbitrageExploiting price discrepancies
short selling · leverage · derivatives · options · futures · capital preservation · correlation · due diligence · rebalancing
high net worth
Possessing considerable financial assets
- limited partnershipVenture with protected investors
- illiquidNot easily converted to cash
- management feeCost for professional oversight
alternative investmentsindex funds
Securities mirroring market indices
mutual funds · blue-chip stocks · government bonds · treasury securities · savings accounts
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