• An alternative investment is a financial asset that does not fall under the usual capital/income/cash categories.

  • Private or venture capital, hedge funds, real estate, commodities and tangible assets are all examples of alternative investments.
  • Most alternative investments have fewer regulations from the US Securities and Exchange Commission (SEC) and tend to be somewhat illiquid.
  • Traditionally targeted at institutional or accredited investors, alternative investments have become available to retail investors through alternative funds.