Investing in properties directly offers some benefits that REITs and funds don’t. : As sophisticated investors already know, including alternative investments in a portfolio helps protect against volatility and downside risk while providing an opportunity to achieve higher rates of return because of their low correlation to the traditional stock and bond markets. It should then come as no surprise that real estate is among the most popular alternatives since, unlike strategies such as managed futures or derivatives contracts, real estate is tangible. Think office buildings, apartment houses, shopping centers or undeveloped land, among other possibilities.