What is an Alternative Investment?
Alternative investments are assets that fall outside the traditional investment categories. Traditional investments include stocks, bonds, mutual funds or exchange-traded funds (ETFs). Alternative investments include venture capital or private equity, commodities, derivatives, currencies, structured settlements, managed futures, real estate, hedge funds and real assets such as art and antiques.
The reasons for moving into an alternative investments include a need to diversity a portfolio, specific tax incentives or an unusual opportunity to take advantage of a deeply discounted asset.
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