On the go: More than two-fifths of UK investors are considering alternative investment strategies in light of record low-interest rates, according to research commissioned by NexGen Cloud.
Results of the survey showed that of the 889 UK investors surveyed, 43 per cent were more likely to consider alternative assets to make their money work harder in the current low-interest-rate environment.
Furthermore, 20 per cent of the investors surveyed said their current portfolios were weighted more towards alternative investments than traditional assets, with 23 per cent saying alternative investments will form a key part of their financial strategy in the coming year.
The study also showed a growing link between alternative investing and investor’s personal interests.
Three in 10 respondents said alternative asset classes present an opportunity to invest in more specialised fields that they are more passionate about and know better.
Real estate was the most common alternative investment among the UK investors surveyed, all of whom hold portfolios worth in excess of £10k. Seventeen per cent reported they hold real estate investments at present, while a further 19 per cent were considering investment into property assets over the next year.
Cryptocurrencies and collectables were joint second on the list of the most popular alternative investments, with both receiving backing from 14 per cent of survey respondents.
Chris Starkey, founder and director of NexGen Cloud, said: “Over the past 18 months, the financial markets have been subject to intense volatility, which combined with record low-interest rates, is evidently leading investors to diversify into new areas beyond mainstream assets.
He added: “Clearly, some investors are seeking ways of making their money work harder in the current climate. However, it is also interesting to note that investors are also choosing to diversify into asset classes that they feel a greater connection to, which is a positive side of alternative investments that is often overlooked.
“Investors have never had so much choice of how and where to invest their money. Our research shows that many are now embracing the possibilities by finding investments within their areas of expertise or industries they are passionate about.”
