Alternative investments are forms of investment that differ from traditional asset classes such as equities, bonds and commodities. They encompass a variety of investments, including private equity, hedge funds, commodities, real estate, infrastructure and other non-traditional assets. Alternative investments offer investors the opportunity to diversify their portfolio and potentially achieve higher returns, as they are usually uncorrelated with the stock markets. However, they can also involve greater risk and often require specific expertise and longer investment horizons. Alternative investments are used by institutional investors and high net worth individuals to complement their portfolios and improve the risk/return profile.