Getty ImagesMore advisors are using alternative investmentsAlternative investments typically fall into four categories: hedge funds, private equity, "real assets" such as real estate or commodities and prepackaged investments known as "structured products." Amid double-digit losses in the stock and bond markets this year, there's been an uptick in advisors turning to alternative investments, as planners seek further diversification, according to a recent survey from Cerulli Associates. watch nowScott Bishop, a certified financial planner and executive director of wealth solutions at Houston-based Avidian Wealth Solutions, said some clients use a portion of their portfolios to educate their adult children about investing. 'Know what you own and why you own it'With more interest in alternative investments, experts say it's important to understand the risks — as well as the products themselves — before shifting portfolio allocations. There's a growing range of products falling under the umbrella of alternative investments, and it's critical to understand how an asset could perform through different market conditions, he said.

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