Real assets in alternative investments refer to tangible assets such as real estate, infrastructure, and natural resources. These types of assets are considered to be less correlated to traditional financial markets, meaning their value is less affected by economic conditions or stock market performance.
Examples of real assets in alternative investments include:
Real estate: This can include commercial properties, residential properties, and land.
Infrastructure: This can include things like airports, toll roads, and power plants.
Natural resources: This can include things like timberland, mineral rights, and farmland.
Real assets can provide investors with a source of steady cash flow, along with the potential for appreciation in value. They can also offer a level of protection against inflation and provide diversification benefits to a portfolio.