Even as alternative investments have been the rage of late, many investors are uncomfortable putting them into their portfolios.
to a recent survey from Rydex Investments, 63% of respondents don't
invest in alternatives because they don't know enough about them. In
addition, 25% think alternatives are too risky and 19% don't invest in
because they don't know how to buy them.
But after they're told what alternative investments are and how they work, 60% of those surveyed said they'd consider investing in them if their advisor recommended it.
And, evidently, more advisors are in a position to do just that. Rydex found that 55% of financial advisors have boosted their use of alternative investments by as much as 25% since 2001.
The upshot: alternative investments could be a growing area of engagement between advisors and their clients.