What are the different types of alternative investments?

Alternative investments are investments that do not involve stocks, bonds, or other traditional investments. In California, the Alternative Investments Law (AIL) governs alternative investments. The AIL defines alternative investments broadly, including tangible assets such as real estate, natural resources (e.g., oil and gas), precious metals such as gold, silver, and platinum, private equity, venture capital, hedge funds, derivatives, tokens, and cryptocurrency. Real estate investments can range from a single rental property to large commercial or industrial buildings. Natural resources can include commodities such as oil and gas, as well as minerals and timber. Precious metals are rare, valuable metals such as gold, silver, and platinum. Private equity investments are investments in private companies or investments in public companies that have not yet publicly traded. Venture capital investments are investments in early-stage businesses with high potential for growth. Hedge funds are private investment funds that use various strategies to generate returns. Derivatives are investments based on underlying assets, such as futures, options, and swaps. Tokens are digital assets connected to blockchain networks, and cryptocurrency is a digital currency that is not issued by a central authority. These are some of the alternative investments that are regulated by the AIL in California. Alternative investments can be risky, so it is important to research the investment and understand the associated risks before investing.

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What are the different types of alternative investments?

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