Key Takeaways
- • HSBC survey of 10,797 global investors reveals alternative investment allocations have doubled over the past year, with more than 50% of respondents ($100,000–$2 million in investible assets) planning to own alternatives within 12 months.
- • Gold emerged as the standout asset class in 2025, with portfolio allocations more than doubling to 11% from 5%—the largest allocation increase across all asset classes—with approximately 50% of respondents planning to invest in the asset over the next year.
- • Private market funds lead alternative investment products, with 29% of respondents planning to add them to portfolios, followed by hedge funds at 20%, as investors prioritize diversification across multi-asset solutions.
- • Cash allocations declined nearly 40% year-over-year among surveyed investors, with Gen Z and Millennials reducing cash holdings most aggressively from 31% to 17%, reflecting a broader shift toward growth-oriented and alternative assets.
- • Physical gold dominates safe-haven demand at 41% of respondents, though digital gold shows emerging interest at 28%, indicating diversified entry points into precious metals exposure.
Summary
A comprehensive HSBC survey spanning 10,797 affluent investors across 12 global markets—including 1,098 U.S.-based participants—reveals a significant structural shift in portfolio construction toward alternative investments and precious metals. The "Affluent Investor Snapshot 2025" demonstrates that wealthy investors with $100,000 to $2 million in investible assets have doubled their allocations to alternative assets over the past year, with more than half of respondents committing to further expansion within the next 12 months.
Gold has emerged as the dominant performer and preferred safe-haven asset, with allocations surging to 11% of portfolios from 5%—representing the largest year-over-year allocation increase across any asset class. This trajectory is expected to accelerate, with approximately half of all survey participants planning to establish or expand gold positions. Notably, 41% of respondents specifically target physical gold as a defensive holding amid market unpredictability, while 28% have expressed interest in digital gold formats, suggesting broadening access preferences.
Within the alternative investment category, private market funds command the strongest commitment, with 29% of respondents planning to allocate capital, followed by hedge funds at 20%. Multi-asset solutions and mutual funds round out the preference hierarchy. These vehicles reflect institutional and affluent retail investor appetite for enhanced diversification beyond traditional equity and fixed-income holdings.
Concurrent with the shift toward alternatives and gold, investor cash positions have contracted sharply by nearly 40% over the trailing year. Younger demographic cohorts—Generation Z and Millennials—have implemented the most aggressive derisking of cash, reducing allocations from 31% to 17%. This redeployment suggests confidence in alternative asset valuations and a structural belief in the superiority of diversified, non-traditional holdings relative to cash equivalents in the current macro environment.
The survey data underscores a material reallocation of capital from defensive cash positions into both traditional safe-haven assets (gold) and return-generating alternatives (private markets, hedge funds), indicating a sophisticated investor base actively repositioning for portfolio resilience and growth across geographically diversified markets.
Gold has emerged as the dominant performer and preferred safe-haven asset, with allocations surging to 11% of portfolios from 5%—representing the largest year-over-year allocation increase across any asset class. This trajectory is expected to accelerate, with approximately half of all survey participants planning to establish or expand gold positions. Notably, 41% of respondents specifically target physical gold as a defensive holding amid market unpredictability, while 28% have expressed interest in digital gold formats, suggesting broadening access preferences.
Within the alternative investment category, private market funds command the strongest commitment, with 29% of respondents planning to allocate capital, followed by hedge funds at 20%. Multi-asset solutions and mutual funds round out the preference hierarchy. These vehicles reflect institutional and affluent retail investor appetite for enhanced diversification beyond traditional equity and fixed-income holdings.
Concurrent with the shift toward alternatives and gold, investor cash positions have contracted sharply by nearly 40% over the trailing year. Younger demographic cohorts—Generation Z and Millennials—have implemented the most aggressive derisking of cash, reducing allocations from 31% to 17%. This redeployment suggests confidence in alternative asset valuations and a structural belief in the superiority of diversified, non-traditional holdings relative to cash equivalents in the current macro environment.
The survey data underscores a material reallocation of capital from defensive cash positions into both traditional safe-haven assets (gold) and return-generating alternatives (private markets, hedge funds), indicating a sophisticated investor base actively repositioning for portfolio resilience and growth across geographically diversified markets.
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