Alternative investments refer to forms of investment that fall outside traditional asset classes such as equities, bonds and cash. These include, among others: private equity (investments in unlisted companies), hedge funds (active investment strategies involving derivatives, short selling, etc.), real estate (direct investments or via funds), commodities (e.g. gold, oil, agricultural commodities), infrastructure projects (e.g. renewable energies, transport networks) or collectibles (art, wine, classic cars). Alternative investments are often considered less liquid and riskier, but offer the potential for higher returns and portfolio diversification. They are frequently used by institutional investors such as pension funds or high net worth individuals.
