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Alternatives seek to deliver diversification benefits and offer investors a differentiated source of returns.
Investors considering investing in alternatives should be aware of the unique characteristics and risks of these investments. Alternative mutual funds may hold non-traditional investments and employ more complex trading strategies than traditional mutual funds. Alternative funds might invest in assets such as foreign securities, commodities, futures, small-cap companies, high yield bonds (also known as junk bonds),exchange-traded products and other non-traditional type products as compared to traditional stocks, bonds and cash. Funds that invest in these types of assets may be subject to higher risks, more volatility and less liquidity.