Alternative Investments are investments assets that don’t include cash, stocks, or bonds. These assets are usually held by institutional investors and individuals with high net-worth. These investments are relatively lesser attractive compared to traditional investments because of lack of liquidity, regulations, high minimum investment fee structure, and some other complications that a regular investor may not want to get involved with. Usually alternative investments are in form of real estate, managed futures, commodities, and hedge funds.
Despite some hazards with alternative investment assets, they are preferred by many investors due to low correlation with standard assets for their returns. This is the reason real estate and some commodities have become widely available.