An alternative investment is an investment product other than traditional investments such as stocks and shares, bonds or cash investments.

The common features of alternative investments have been summarised as follows:

• Poor liquidity 
• Difficulty in determining current market values 
• Limited historical risk and return data 
• Extensive investment analysis required

Some common alternative investments are:

• real estate;
• private equity;
• venture capital;
• commodities;
• hedged or absolute return strategies;
• wine; or
• art and antiques.

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Category: Guide to City Jargon