What are the different types of alternative investment vehicles? Which one is the most preferable? Why?

my answer:There are different types of investment vehicles and based on there characteristics, it should be selected as a best investment vehicle. Different types like bonds, stocks, and mutual funds. An investment vehicle that is made up of a pool of funds collected from many investors for the purpose on investing in securities such as stocks, bonds, and money market instruments and similar assets. It is important to keep in mind that while these alternatives may offer higher return potential, they also involve special risk factors that must be taken into consideration. I believe generally, investor expects high return and it will be possible only if the investor invest in securities like shares where there will be some high return compared to other securities.

instructors question to answer: You highlighted some of the more traditional asset classes.

What are your thoughts regarding derivatives?