Alternative investment

A British 1 shilling embossed stamp, typical of the type included in an investment portfolio of stamps.

An alternative investment, also known as an alternative asset or alternative investment fund (AIF),[1] is an investment in any asset class excluding capital stocks, bonds, and cash.[2]

The term is a relatively loose one and includes tangible assets such as precious metals,[3] collectibles (art,[4] wine, antiques, vintage cars, coins, watches, musical instruments, or stamps[5]) and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, exchange funds, carbon credits,[6] venture capital, film production,[7] financial derivatives, cryptocurrencies, non-fungible tokens, and Tax Receivable Agreements.[8] Investments in real estate, forestry and shipping are also often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth.[9] Alternative investments are to be contrasted with traditional investments.

  1. ^ "Scope - Definition of AIF - AIFMD". Linklaters. 31 January 2017. Retrieved 1 October 2022.
  2. ^ "Alternative Investment". Retrieved 13 February 2021.
  3. ^ Investing, Intelligent. "Five Alternative Investments To Protect Your Wealth From Inflation". Forbes. Retrieved 7 January 2017.
  4. ^ Coslor, Erica; Spaenjers, Christophe (2016). "Organizational and epistemic change: The growth of the art investment field". Accounting, Organizations and Society. 55: 48–62. doi:10.1016/j.aos.2016.09.003. hdl:11343/119743.
  5. ^ Greenwood, John (6 October 2008). "First class returns for alternative investments". Retrieved 7 January 2017.
  6. ^ "FAQs - The Gold Standard". Retrieved 7 January 2017.
  7. ^ Schwartz, Shelly (18 October 2010). "Investing In The Big Screen Can Be A Profitable Story". CNBC. Archived from the original on 12 June 2011. Retrieved 29 October 2011.
  8. ^ "Tax Receivable Agreements | Parallaxes Capital | Alternative Assets". Parallaxes Capital | Experts in Tax Receivable Agreements. Retrieved 17 May 2022.
  9. ^ "Invest in a forest". 24 August 2007. Retrieved 7 January 2017.

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