What are alternative investments?
They are investment instruments, for which the concept of risk and returns are significantly different from the risk and returns of the equity and bond markets. The main “markers” of alternative investments: relatively low liquidity, complexity in estimating the “fair” price and yield, high cost of due diligence and analysis.
What are the main types of alternative investments?
Main types of alternative investments include real property, private equity (direct private funding), commodities (goods), hedge funds, manages futures, and distressed securities (instruments of troubled securities). Please note, that this is a broad description or alternative investments; for example, one could say that another alternative investment would be an investment into pieces of art.
Some types are well known, while others look more complicated… Read more »