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Alternative Market Briefing

Affluent investors double allocations to alternative investments: HSBC

Tuesday, July 08, 2025

Laxman Pai, Opalesque Asia:

Allocations to gold and alternative investments see 120% and 100% year-over-year increases, respectively, said a study. Half of affluent investors plan to own alternatives within the next 12 months - double the current ownership level.

HSBC's new Affluent Investor Snapshot 2025 also said that global affluent investors have put their cash to work, reducing cash allocations by 40% in the past year.

The report pointed out that affluent investors doubled their allocations to alternative investments over the past year. The trend looks set to continue, holding strong appeal into the future as investors seek to diversify their portfolios further.

Around half of the global affluent investors in the survey of 10,797 individuals in 12 markets say they plan to own alternative investments within the next 12 months, doubling the current ownership level.

Affluent investors globally have cut cash levels by nearly 40% over the past year, with younger generations driving the most significant reductions; Gen Z and millennials have cut their cash holdings from 31% to 17%. Younger generations are also leading the adoption of alternative investments, tripling their allocation to alternative investments within the past 12 months.

Multi-asset solutions, private market funds, mutual funds, and hedge funds are the most popular investment products as investors seek broader diversification. Private market funds are particularly popular, with 29% of investo......................

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