Non-traditional assets like private equity, hedge funds, or real estate, used to diversify portfolios.
Description
Alternative investments encompass asset classes outside conventional stocks, bonds, and cash, including private equity, hedge funds, real estate, commodities, and collectibles like art or wine. These investments are favored by family offices and wealth managers for their potential to deliver high returns and low correlation with traditional markets, enhancing portfolio diversification. However, they often involve higher fees, lower liquidity, and increased risk, requiring thorough due diligence. Their complexity and long-term horizons make them suitable for high-net-worth individuals with substantial capital and risk tolerance.
