What are alternative investments?

Alternative investments are continuing to grow in popularity. You may be curious if you should add them to your portfolio as part of your overall investment strategy. This infographic outlines some of the main reasons why investors purchase alternative investments and some of the common types. It’s important to understand what these are so that we can discuss if they are a good fit for your investment goals.

Types of alternative investments

Alternative investments are assets that fall outside the traditional categories of stocks, bonds and cash.

Typically purchased for:

Diversification
Personal interest
Hedging against inflation
Potentially higher returns

Common types of alternative investments

Private equity
Derivatives
Hedge funds
Commodity futures
Real estate
Collectibles