Many alternative investments also have high minimum investments and fee structures compared to mutual funds and ETFs. While they are subject to less regulation, they also have less opportunity to publish verifiable performance data and advertise to potential investors.
Alternative investments are favored mainly because their returns have a low correlation with those of standard asset classes. Because of this, many large institutional funds such as pensions and private endowments have begun to allocate a small portion (typically less than 10%) of their portfolios to alternative investments such as hedge funds.
While the small investor may be shut out of some alternative investment opportunities, real estate and commodities such as precious metals are widely available.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
alternative investment — ➔ investment * * * alternative investment UK US noun [C] FINANCE ► investment in a financial product that someone has not considered before: »The firm will increase its stake in venture capital and energy funds it expects the alternative… … Financial and business terms
Alternative investment — An alternative investment is regarded as an investment product other than traditional investments such as stocks, bonds, money markets, and/or cash.As the definition of Institutional Investor magazine s Alternative Investment Newsletter indicates … Wikipedia
Alternative Investment — Dieser Artikel oder Abschnitt bedarf einer Überarbeitung. Näheres ist auf der Diskussionsseite angegeben. Hilf mit, ihn zu verbessern, und entferne anschließend diese Markierung. Unter Anlageklasse (auch Assetklasse oder Asset Class; engl. asset … Deutsch Wikipedia
alternative investment — Fin an investment other than in bonds or shares of a large company or one listed on a stock exchange … The ultimate business dictionary
Alternative Investment Market - AIM — A sub market of the London Stock Exchange that permits smaller companies to participate with greater regulatory flexibility than applies to the main market, including no set requirements for capitalization or the number of shares issued. The… … Investment dictionary
Alternative investment management company — Alternative investment management companies are the structural (i.e., legal, corporate) entities that manage alternative investment funds including hedge funds and private equity funds. An alternative investment is regarded as an investment… … Wikipedia
Alternative Investment Market — (AIM) A company s shares can become listed on the Stock Exchange or traded on the Alternative Investment Market which has less demanding entry criteria. The company s shares can be traded in the market at publicly quoted prices. The advantage of… … Law dictionary
Alternative Investment Market (AIM) — Alternative Investment Market ( AIM) Aim is designed as a separate market for the shares of smaller growing companies that are not yet ready for a full listing on the London Stock Exchange. It allows them access to investment capital without the… … Financial and business terms
Alternative Investment Market — Also known as AIM. A market for issuing and trading shares on the London Stock Exchange. It is designed to be a lightly regulated market with very low regulatory costs for companies, while giving the company the ability to raise capital and… … Financial and business terms
Alternative Investment Market — The Alternative Investment Market (AIM) is a sub market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the Main Market. The AIM was launched in 1995 and has… … Wikipedia