Explore commonly used personal finance terms.
Alternative assets are investments that fall outside traditional stocks, bonds, and cash, such as real estate, private equity, hedge funds, commodities, and collectibles. These assets often have different risk-return profiles, providing diversification and potential returns uncorrelated to traditional markets. Alternative assets are commonly used by institutional and high-net-worth investors looking to enhance portfolio performance or hedge against market volatility. They require specialized knowledge and may carry higher risks and lower liquidity.
