Advisors are turning more and more frequently to alternative investments and tactical asset management as a key to dealing with the continuing volatility of the market, according to a survey of 500 advisors conducted by Jefferson National.

More than two-thirds (68%) of advisors have increased their use of alternative investments since the 2008 financial crisis and 22% say they have substantially increased their use over the past five years.

"In recent weeks, we've seen the Dow and the S&P drop more than 10% off this year's peaks, and advisors are preparing for the reality of ongoing volatility," says Laurence Greenberg, Jefferson National president. "While the fundamentals of good investing won't change -- establish a disciplined approach and don't overreact -- our survey indicates that in today's turbulent market advisors are employing alternative assets to provide advantages such as increased diversification, and they are more confident in the disciplined use of tactical asset management rather than relying only on traditional buy and hold."

A majority, or 67% of advisors, say they will continue to increase their allocation to alternative investing and 61.5% believes alternatives will become more important than traditional investments in the future.

Advisors note clients need ongoing support and education relating to alternative investments, with advisors almost evenly divided between those who have clients willing to invest in alternatives and those who have clients who are hesitant.

Three fourths of advisors now believe that active portfolio managers can outperform an index over the long term, compared to 63% who felt that way a year ago.