Alternative Investments

In investment jargon, the term “alternative investments” refers to moderately fluid and high-risk investment vehicles like private equity, hedge funds, derivatives, options, commodities, precious metals and real estate.

Typically these investment types supplement traditional investment vehicles like stocks, obligations or investment funds, offering an alternative to those kinds of investments.

In many cases, alternative investments offer higher dividends than other investment types. Likewise, these investments also come with a higher level of risk.

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