What is an Alternative Investment?
The quick and easy definition of an alternative investment is one that is an investment other than the traditional stock, bond, money market that you would typically investment into. Okay, but where does that get us? To dig a little deeper, an alternative investment can include any of the following: • commodities (managed futures) • hedge funds • financial derivatives (currencies) • real estate • private equity • venture capital. That is a very broad stroke of the different categories, but as you can see; each category carries its own unique level of risk.