Affluent investors are also planning to increase diversifying their portfolios across asset classes, investment instruments, and geographies, with individuals in Asia spearheading this trend over the next three years. Looking to the future, affluent investors are interested in derivatives, annuities, exchange-traded funds (ETFs) and bonds.

Despite affluent investors globally demonstrating a home bias for their investments – as reflected in their equity exposure – over one-third say they intend to increase their investments in international markets, with the United States and mainland China ranking as the top two destinations. But almost half of all investors say ongoing uncertainty over market conditions and the complexity of maintaining a portfolio present hurdles to increasing diversification, the survey reveals.

“It’s clear from this data that Millennials are embracing investing earlier than older generations. This puts time in the market and the power of compounding on their side which are critical in building a strong foundation for financial security and wellbeing,” Jeffrey Yap, head of investments and wealth solutions, Southeast Asia, HSBC Global Private Banking and Wealth, said. “As they go through their investment journey and put their cash to work, they will look for actionable views and solutions that directly address their needs. This is where our expertise can make a significant difference.” 

“The fact that young investors are looking more closely at alternative assets serves as another tailwind for the asset class, as product and platform innovations improve accessibility for a wider range of investors, especially to private markets,” Yap added.