What isn't an alternative investment?

Investments that are not considered "alternative" typically fall into the category of traditional investments. These are the more common and widely recognized types of investments, which include:

1. Stocks (Equities): Shares of ownership in publicly traded companies. Investors can buy individual stocks or invest in them through mutual funds and exchange-traded funds (ETFs).

2. Bonds (Fixed Income): Debt securities issued by governments, municipalities, or corporations. Bonds pay interest over a specific period and return the principal amount at maturity. They can be purchased individually or through bond funds and ETFs.

3. Cash and cash equivalents: Short-term, highly liquid investments with low risk, such as savings accounts, money market funds, and certificates of deposit (CDs). These investments typically provide lower returns but preserve capital and offer easy access to funds.

4. Index funds: A type of mutual fund or ETF designed to track the performance of a particular market index, such as the S&P 500 or the Dow Jones Industrial Average. These funds offer diversification and typically have lower fees than actively managed funds.

5. Mutual funds: Pooled investment vehicles that invest in a diversified portfolio of stocks, bonds, or other securities. Mutual funds are managed by professional portfolio managers who make investment decisions on behalf of the fund's shareholders.

These traditional investments are often the foundation of many investment portfolios, as they tend to be more liquid, transparent, and regulated compared to alternative investments. They typically provide a balance between risk and return, making them suitable for a wide range of investors.