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Traditional Vs Alternative investments
Since in its definition, alternative investments are linked to traditional investments, a comparison between the two becomes imperative.
It is important to remember that generally alternative investments have shown little correlation to traditional investments such as stocks and bonds. By nature, they are more illiquid and more complicated than a traditional portfolio. They are a great addition to any portfolio. Many alternative portfolios provide a significantly higher return than traditional investments.
Now, let us draw a comparison between the two:
