What is the difference between a securities-based investment fund and an alternative investment fund?

A securities-based investment fund invests in publicly listed securities such as shares, bonds or other financial instruments. The fund collects capital from many investors and invests it according to a predetermined investment strategy. In the EEA, UCITS are regulated, which means that in addition to being restricted to investing in securities, they are also subject to strict requirements regarding minimum diversification across different securities.
Alternative investments cover a wide range of different types of assets. They include investments in real estate, private equity, hedge funds, commodities, private debt and infrastructure projects. Alternative investment funds may also invest in traditional securities but, unlike UCITS, they are not subject to the strict requirements regarding diversification of investments across different securities.
In general, however, a securities-based investment fund is a more traditional form of investment that is very strictly regulated in the form of a UCITS, while alternative investments are more diverse and can sometimes be riskier.