Alternative investments, such as private equity, hedge funds, real estate, and commodities, offer diversification beyond traditional stocks and bonds. These investments can provide returns that are not correlated with the stock market, which helps reduce overall portfolio risk. However, alternative investments may carry higher fees, less liquidity, and more complexity than traditional assets. It’s crucial to work with an experienced wealth manager who can assess the suitability of these assets based on your investment goals, risk profile, and time horizon.