Beyond the three primary asset classes–stocks, bonds, and cash– many other types of investments can be used to diversify investment portfolios. The term “alternative assets” is highly flexible.
According to wikipedia, an alternative investment is defined as follows:
An alternative investment is an investment product other than the traditional investments of stocks, bonds, cash, or property. The term is a relatively loose one and includes tangible assets such as art, wine, antiques, coins, or stamps and some financial assets such as commodities, private equity, hedge funds, venture capital, film production and financial derivatives.
While some of the alternative investments listed in the wikipedia definition may seem exotic or out of reach, the trust is that most alternative investments are things that you already know well. They are investments that you are able to make clear strategic decisions on.
Learn more about these types of alternative investments: