Advisors Embrace Alts Amid Volatility

Source: Survey Finds Increasing Demand In Alternative Investments For Investors

With stocks gyrating in 2022, more financial advisors adopted alternative investments to stabilize portfolios, finds a new survey. The poll reveals rising demand for alternatives like private equity and debt.

About a quarter of respondents already use alts, while another fifth plan to within two years. Advisors sought these assets chiefly for diversification and risk management amid market turbulence.

However, others shy from alternatives, deterred by liquidity constraints and high fees. Lockup periods and opaque performance also give pause. But supporters argue illiquidity concerns can be planned for, and alts enhance return potential.

The survey indicates advisers increasingly see alternatives as useful portfolio complements. However, they must carefully weigh suitability given clients' goals and constraints.

With volatility flaring, alts offer stability. However, their complexity requires education and due diligence before investing. Ultimately, the results show alternates assuming a larger role for wealth managers navigating markets.

For full details, you can read the following article here: Survey Finds Increasing Demand In Alternative Investments For Investors.

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