5 Statistics That Show The Growth Of Alternative Investing

Investors have poured trillions into alternative investments in the last several years.

The most common way for investors to access alternative investments is through buying into liquid alternative mutual funds, non-traded REITs, and  liquid ETFs

A Cerulli Associates poll of more than 100 investment advisors found that asset managers maintained around 15% of their investments in alternatives in the first half of 2022, up 10% year  over year.

Within alternative asset classes, the wealthiest investors in the world also said they’ve halved their investments in hedge funds since 2017.

Infrastructure, in particular, has been singled out by the U.S. federal government and lawmakers as a funding priority over the next decade.

Investments in private equity make up the lion’s share of all alternative investments at $6.5 trillion, or 36% of all investments, according to CAIA.

Alternative investments hovered around 9% annual return over the last 10 years, offering a steady value proposition for investors to pad their portfolios.