Cliro

CFA® Level I · 2027 curriculum

Alternative Investments for CFA® Level I

Alternative Investments explains how private capital, real assets, hedge funds and digital assets differ from traditional investments, covering access structures, performance measurement, return drivers, risks and diversification.

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What this topic covers

Alternative Investments introduces asset classes and strategies outside traditional public equity, fixed income and cash. You will examine how investors gain exposure, how ownership and compensation structures work, and why performance can be difficult to measure. The topic then explores private capital, real estate, infrastructure, natural resources, hedge funds and digital assets, focusing on their distinctive return drivers, risks and potential portfolio roles.

By the end of this topic you should be able to:

  • Distinguish alternative asset categories, access methods and ownership structures.
  • Interpret alternative performance measures, fee mechanics and appraisal limitations.
  • Compare private equity, private debt and private-capital diversification considerations.
  • Assess real estate, infrastructure and natural-resource investment characteristics.
  • Explain hedge-fund strategies, access vehicles and strategy-specific investment risks.
  • Understand digital-asset technology, investment routes and portfolio considerations.

How the topic is structured

The topic begins with what makes alternative investments distinctive and how investors gain exposure through funds, co-investments or direct holdings. It then addresses performance measurement and fees before examining the major categories in turn: private capital, real estate and infrastructure, natural resources, hedge funds and digital assets. Across these sections, recurring themes include illiquidity, specialist knowledge, leverage or operational complexity, valuation challenges, distinctive return drivers and the possibility, rather than certainty, of diversification benefits.

Practice in Cliro

How you practice Alternative Investments in Cliro

  • Practice by topic

    Work through this topic on its own, or include it in a mixed session across the curriculum.

  • Detailed explanations

    See why the correct answer works after every practice question.

  • Review and mistakes

    The mistake log keeps incorrectly answered questions easy to revisit. Review brings due concepts back after time has passed.

  • Formula Gym and progress

    Recall key formulas without prompts and track progress by topic and concept.

Exam Pass and Monthly both include the two full mock exams.

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Where Cliro fits

Use Cliro at any stage of your Level I preparation.

  • Starting Level I

    Take the free diagnostic, then practice by topic. Your results build a picture of where you stand across all ten topics.

  • Retaking Level I

    Your diagnostic and practice results show which concepts are still weak. The mistake log keeps incorrectly answered questions easy to revisit, and Review brings due concepts back after time has passed.

  • Alongside your existing materials

    Cliro is designed to work alongside your core reading materials, adding question practice, mock exams, Formula Gym, review and progress tracking.

Other Level I topics

Start with a clear picture of where you stand.

The free diagnostic gives you an initial topic profile. Upgrade when you want the full Question Bank, mock exams and Formula Gym.

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Free diagnostic • 20 questions • No payment details required