Alternative investments are investments in unconventional assets.
Alternative investments range from private equity and venture capital to investments in collectibles, precious metals, art and antiquities.
Alternative investments tend to be less liquid and less volatile than their traditional counterparts. Alternative investments are a diverse and dynamic asset class that provide an opportunity for portfolio diversification. As these investments are largely uncorrelated to the stock market, they have less volatility.
Also, some asset classes allow direct ownership of the asset such as real estate, art and precious metals. This allows the investor to have investments that may also align with their personal interests. These investments pave the way to robust long-term investment, even during times of market uncertainty.