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What are bonds? Bonds, also known as fixed income instruments, are used by governments or companies to raise money by borrowing from investors. Bonds are typically issued to raise funds for specific projects. In return, the bond issuer promises to pay back the investment, with interest, over a certain period of time.
On the other hand, alternative investments are supplemental strategies to traditional long-only positions in stocks, bonds, and cash.
Alternative investments include investments in five main categories: hedge funds, private capital, natural resources, real estate, and infrastructure.
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