Feeling left out at the neighborhood cocktail party when the discussion turns to alternative investments in your portfolio? Don't. Unless handled with care, this area of investing can be a sinkhole.

However, if you are pursuing a properly allocated and diversified portfolio you may want to check out alternatives. Rydex Funds offers the SPhinX Fund, a "fund of hedge funds" product that may be worth looking into. As with most alternative investement products, you have to be an accredited investor to participate. Talk to Rydex or ask your advisor for more information.