Alternate investments refer to non-traditional assets outside of stocks, bonds, and cash, offering diversification and potentially higher returns. These include real estate, private equity, hedge funds, commodities, and collectibles. Investors turn to alternates for portfolio diversification, aiming to reduce overall risk through assets with low correlation to traditional markets. They often seek higher returns, though with increased complexity and liquidity challenges compared to conventional investments. Due to their less regulated nature, alternates require specialized knowledge and due diligence. Despite risks, they can offer unique opportunities for capital appreciation and income generation, appealing to investors looking beyond standard financial instruments for potentially higher yields and portfolio resilience.