Alternative investments, also known as “alternatives” or “alts,” are generally considered investments in asset classes other than stocks, bonds, and cash. There is a robust list of alternative investments, ranging from tangible assets like art and precious metals to financial assets like venture capital and real estate investments.
Alternative investments aren’t traded on public markets like stock exchanges or OTC. Instead, they’ve traditionally been invested through more exclusive channels like Portfolio Management Services and Alternative Investment Funds.
Since alternative investments tend to have lower correlations to traditional investments, they are primarily used to diversify an investment portfolio and provide returns that may differ from conventional assets.