In detail

If you already have an investment portfolio and you're thinking about how to add diversification or increase your potential to earn long-term returns, consider alternative investment strategies - which can include, for example, international infrastructure and high-growth property markets.

Alternative investments are investments that:

• are not part of the traditional investment classes like shares and bonds
• provide a pattern of investment returns that complement traditional assets
• They can give you the potential for boosted long-term returns and diversification, but in some cases you must be prepared to take on higher risks and maybe even lock away your money for a set period of time.

Why invest in alternative assets?

Alternative investments give you 2 potential benefits:

• return enhancement - they can help enhance your overall portfolio returns by adopting strategies that offer the potential for attractive returns, often with less volatility (fluctuations in your returns) than traditional investments
• portfolio diversification - they can diversify your portfolio because their returns often have a low correlation to traditional investments, making the returns from your portfolio potentially more stable

Things to consider

Alternative investments might suit your needs if you:

• have established (or are establishing) a well-diversified portfolio
• are looking to increase the potential return of your overall portfolio
• are comfortable that in some cases you may be unable to access your investment for an extended period of time
• want to diversify your investment risk outside traditional asset classes.

Adding alternative investments to your portfolio gives you the potential for higher long-term returns, but it's important to remember that alternative investments often carry specific risks that are different to those of traditional assets.

The type and level of risk varies widely depending on the asset class and the product. We suggest you read the risk and return section for more information about the risks of investing in alternative assets.

Find out more

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