Alternative investments rising in popularity amid inflation fear, report finds

Alternative investments rising in popularity amid inflation fear, report finds

Half of UK investors have either made alternative investments this year or are considering doing so by the end of 2023 as they seek inflation-beating options, new research from Shojin has revealed.

The FCA-regulated investment platform commissioned an independent survey among 690 UK adults, all of which have investment portfolios worth in excess of £10,000 – this includes all forms of investments but discounts their savings, pensions and property used as a primary residency.

The research found that 18% of investors have made alternative investments in 2022, which include assets such as private equity, commodities, real estate and infrastructure. Among those aged 18-34, the figure more than doubles to 41%.



A further 32% are either considering making alternative investments within the next six months (17%) or in 2023 (15%).

Shojin’s study showed that two in five (39%) investors are more likely to consider alternative investments as a result of the high-inflation environment. Inflation hit a 40-year high of 9.4% in July and the Bank of England expects it to reach 13% in late 2022.

Jatin Ondhia, CEO of Shojin, said: “With inflation topping 9% and likely to rise further in the months to come, many investors are evidently weighing up their strategies carefully. Tellingly, our research shows that half of UK investors, and even more younger ones, have made or are considering alternative investments in the current climate.

“This will be an interesting trend to monitor. Indeed, investors of all shapes and sizes will currently be evaluating different assets, markets and methods of investing – many will be seeking options which might stand a better chance of delivering returns that can either keep pace with or exceed the rate of inflation.

“As ever, thorough research will be crucial so that investors make informed decisions to try meet their short-, medium- and long-term goals. This is likely reflected in the fact that while 18% have made alternative investments in 2022, a much higher number (32%) are still evaluating this option, which is positive to see.”

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