Alternative Investments

Under U.S. law, certain investment products are only available to accredited investors, who must have a household net worth of $1 million or more. A key advantage of many of these so-called "alternative investments" is that, at least in theory, they help diversify a portfolio because they don't move in lockstep with traditional stock and bond investments, and so help balance out returns.

Alternative investments include venture capital funds, private equity funds, direct investments in commodities such as timber, and stakes in private companies.