Alternative investments offer potential rewards for investors who are willing to take on a higher level of risk. These investments can provide returns that are not tied to the traditional stock and bond markets, and can include assets such as real estate, commodities, hedge funds, private equity, and more. Alternative investments have the potential to produce substantial returns, which is one of their key advantages. This is because these assets have special qualities that can present possibilities for smart investors, such their illiquidity or lack of transparency. Also, diversification advantages that alternative investments can offer to a portfolio can help to lower overall risk. Alternative investments demand careful study and due diligence, while not all investors are eligible for them. To ascertain whether alternative investments match your investing goals and risk tolerance, it's crucial to see a financial counselor.