The Smart Investors

Alternative investments refer to the investment that are alternative to stocks, bonds and cash. They are real estate, various types of private equity, hedge funds, commodities, collectibles, and cryptocurrencies. These investments can offer less risk just the same way they may pose more risk. They can be used to diversify our investment portfolio and even provide better returns than traditional investments.

Alternative investments are better in investment for individuals with high risk appetite and want long term benefits. They actually make a great addition to a stock and bond portfolio, but you need to learn how to avoid risks involved like the volatility in crypto etc.

They are other forms of investment like real estates, private equity, cryptocurrencies and collectibles like art. They are use to diversify investment portfolios and in some cases they may end up giving you high returns but it also has high risks too.

These are investments outside stocks and bonds like the hedge funds, commodities or venture capital. They provide diversification and are a bit complex. That is why they demanded extra research if you want to invest in them.