An alternative investment is an investment in a product that is not traded on a public exchange or in a traditional savings account.
For example alternative investments include items such as art, wine, antiques, stamps and even buy-to-let property.
Alternative investments give people saving for their future the ability to invest in items that they can enjoy in their lifetimes (such as art or race horses) and also are insulated against falls in the major stock and commodity markets.
Additionally, investments in products such as hedge funds, natural resources, and venture capital can provide a high-risk high return option.
Most experts predict that alternative investments should be used in addition to more traditional investments in stocks, shares, cash savings, and bonds rather than as an investment strategy on their own.
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