What are alternative assets and what are their main advantages?

Alternative assets are a type of investment that is outside of conventional financial markets. They include real estate, venture capital investments, private equity investments, works of art and collections, and infrastructure investments, among others. The main advantage is its low correlation with traditional markets, in other words, its performance can be independent of the stock or bond markets. This fact will help diversify the portfolio and reduce volatility, which will provide stability to the investment. Furthermore, alternative assets typically have significant long-term return potential. As time passes, its value can increase significantly.