In contrast to a "regular" investment fund, an Alternative Investment Fund (AIF) represents financial assets that are NOT intended for investments in stocks and securities but for tangible asset investments.
Encompasses investment types that do not fall within one of the conventional investment types (e.g., stocks, bonds, and cash). Alternative investments are typically held by institutional investors or accredited, high-net-worth individuals because of the complex nature and investor eligibility requirements. The most common alternative investments are private equity, private credit, real estate, hedge funds, and structured investments. Alternatives tend to have different attributes than traditional stock and bond investments from a risk-return and time horizon perspective and may be used in a portfolio to enhance return/income potential, provide diversification, and/or dampen volatility.