Financial Terms Dictionary: ELI5 Version - Alternative Investments

Alternative Investments:

a distinct asset class within the realm of finance, encompass a diverse array of non-traditional investment vehicles, strategies, or instruments, outside the conventional scope of stocks, bonds, and cash equivalents. These investments often present unique risk-return profiles and may display low correlation with traditional asset classes, offering investors an avenue to diversify their portfolios and potentially achieve enhanced risk-adjusted returns.