Alternative investments are suitable for achieving greater portfolio diversification. In general, this includes everything not belonging to the traditional investment categories, such as equities and bonds. Examples of alternative investments are: private equity, real estate, hedge funds or raw materials. Compared to traditional asset classes, alternative investments are often more complex, differently regulated and less liquid. This means they are to be classified as more demanding and bind invested capital longer. Consequently, a longer investment horizon is usually required. In return, this form of investment is less exposed to interest rate developments and the stock markets fluctuations, the so-called lower correlation.