Real estate and infrastructure are important sectors for risk-averse investors. : Real estate is undoubtedly a significant element of asset allocation, and should form a component of any institutional or personal investment portfolio. Also increasing in importance is infrastructure, which has similar advantages to real estate. Based on research at the University of Regensburg in Germany, this article will consider some of the main asset allocation issues in this context. Both real estate and infrastructure constitute attractive investments for risk-averse investors, especially during bear markets.