ELI5: Explain Like I'm 5

Alternative investment

Alternative investments are any investments outside of stocks, bonds, and cash. They can include things like commodities, real estate, investments in a private company, or even loan money. These investments can be riskier than stocks and bonds, but they can also offer higher returns. By diversifying your investments, you can help to spread out the risk, so that if one investment goes bad you don't risk your entire savings.