Over 50% Investors Look for more Alternative Investments for Next 12 Months, Survey Shows

Brian Njuguna  Jul 14, 2022 04:36  UTC 20:36

2 Min Read

Subject to escalating inflation and the high cost of living, investors are looking at investing in alternative assets for diversification purposes, according to a survey by Asset Tribe.

Asset Tribe, an alternative investment platform, suggests that the need for alternative assets will increase next year. Per the report:

“The results of this survey showed a positive outlook for alternative assets over the next 12 months with 53% stating that their appetite for alternative assets will increase over the next 12 months whilst only 6.4% said they would decrease (46% net growth).”

Hedging the increasing rate of inflation and pursuing higher yields and returns on investment are the major part of key drivers to support this demand. Asset Tribe stated:

“Firstly, due to the current rate of inflation (62%), secondly due to an increasing need to diversify existing portfolios (62%) and finally because of the attractive higher potential returns (53%).”

With the advent of the digital era, investors showed an inclination towards using technology, with ideas like tokenization taking the lion’s share at 74% compared to 44% recorded overall.

Tokenization entails the process of converting a valuable object into a digital token that’s usable on a blockchain application.

Having surveyed more than 580 sophisticated investors or high net worth individuals, Asset Tribe noted that the most popular alternative asset was real estate at 75%. 

The other alternative assets were long-term asset funds, carbon net zero funds, forestry, fine art, and wine at 62%, 51%, 49%, 40%, and 38%, respectively. 

Jeremy Davies, the CEO and founder of AssetTribe, said:

“This is one of the largest surveys into attitudes of investors towards alternative assets across the UK and continental Europe. Alternatives have been a rapidly growing asset class for institutions for the last 20 years, and it is clear that High Net Worth Investors want in on the act.”

Earlier this year, a study by Goldman Sachs, a leading global investment bank, found that 51% of its institutional clients had crypto exposure, Blockchain.News reported. 

Image source: Shutterstock

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