Alternative Investment vehicles are any investments that do not fall into traditional investment vehicles, namely equities, bonds, and cash. They are quite illiquid assets. In other words, they can't be easily converted into cash. Alternative investments include
investments in hedge funds, private capital, natural resources, real estate, and infrastructure.

While traditional investments are open to all types of investors, alternative investments are open to wealthy investors, like high-net-worth individuals (HNVIs). Incorporating alternatives into every portfolio is a good decision because it behaves as a diversifier
tool due to its low correlation with traditional investments. Correlation, in finance and investment industries, indicates the degree to which securities move in relationship with one another. Therefore, a low correlation means that alternative investments move
completely independent of the stock and bond markets.


Diversification is an investment strategy that is used by investors to increase returns and lower the overall risk by allocating their capital across different types of investments and industries. For investors, it's very important to understand how to construct a diversification strategy in order to strengthen their investment portfolios.
Therefore, diversification among financial assets with low correlation to one another can offer long-term benefits.