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 private equity, which involves investing in privately-held companies. Private equity investors typically buy a stake in a company with the goal of improving its performance and selling it at a profit.

Hedge funds are another example of alternative investments. These funds pool money from investors and use various strategies to generate returns, such as long and short positions, leverage, and derivatives.

Other alternative investments include commodities (like gold and oil), collectibles (such as art and wine), and cryptocurrencies (like Bitcoin). These investments can provide diversification and potential for high returns, but they also carry unique risks and require careful consideration before investing.