This lesson explores non-traditional investments, such as private equity, hedge funds, and real estate, which are increasingly important for sophisticated portfolios.

4.1 Understanding Alternative Investments
Alternative investments are typically illiquid and more complex than traditional stocks and bonds, but they offer valuable diversification benefits. This category includes direct private equity, real estate funds, and hedge funds . Students must learn to analyse these complex instruments and understand their role in portfolio construction . The University of Bologna course explicitly dedicates a section to alternative investments via handouts and presentations .

4.2 Derivatives
Derivatives are financial instruments whose value is derived from an underlying asset. Key derivatives include futures, options, and swaps . A core skill is understanding how options work, including call and put options . Derivatives are powerful tools that can be used for hedging risk or for speculative purposes, and a robust wealth management curriculum provides a foundational understanding of their structure and application .

4.3 Real Estate and Property Investments
Real estate is a major asset class in wealth management. Professionals must have an overview of the different real estate products and their legal structuring . This includes understanding various real estate funds, the legal structuring of real estate products, and the interconnections between business and family property management .