Alternative investments refer to any investment outside of traditional asset classes like stocks, bonds, and cash. These investments often offer unique opportunities for diversification and potentially higher returns, but they also come with increased risk and complexity.
One common type of alternative investment is real estate. Investors can buy physical properties or invest in real estate investment trusts (REITs) that own and manage properties. Real estate investments can provide rental income and potential appreciation in property value.
Another popular alternative investment is pri