Young, wealthy investors are flocking to alternative investments, study shows. What to know before adding to your portfolio
October 12, 2022 | Kate Dore | CNBC
Younger, wealthy investors are looking beyond the stock market for higher returns.
Some 75% of high-net-worth investors between the ages of 21 and 42, compared to 32% of investors over 43-years-old, don’t expect “above-average returns” solely from traditional stocks and bonds, according to a Bank of America Private Bank study released Tuesday. The firm polled 1,052 high-net-worth investors with at least $3 million in investable assets from May to June 2022.
What’s more, 80% of those young investors are turning to so-called alternative investments, which fall outside of traditional asset classes, the study found. Younger investors are allocating three times more to alternative assets and half as much to stocks than other generations.
