Alternative investing refers to any investment strategy that falls outside of traditional investments like stocks, bonds, and cash. Alternative investments can include real estate, commodities, private equity, hedge funds, art, and cryptocurrencies, among others.
One of the benefits of alternative investments is that they can provide diversification to a portfolio, potentially reducing risk and enhancing returns. However, alternative investments are often less liquid and can be more complex to understand than traditional investments. Additionally, alternative investments often have higher fees and require more due diligence on the part of the investor.
Investing in alternative assets can also come with a higher level of risk, as there is often less regulation and oversight than with traditional investments. Before investing in alternative assets, it is important to understand the risks and benefits of the specific investment and to consult with a financial advisor.