Data & Research July 16, 2025

Alternative Investments, Gold Rank as Top Assets for Global Investor Cohort

About 80% of investors responding to an HSBC survey said they seek guidance from experts when making investment and wealth management decisions.

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Wealthy investors have doubled their allocations to alternative investments over the past year due to their desire to further diversify their portfolios, according to HSBC.

HSBC’s “Affluent Investor Snapshot 2025” found that more than half of survey participants with between $100,000 and $2 million in investible assets said they plan to own alternative investments within the next 12 months, doubling their current ownership level.

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Respondents also reported that they have cut cash levels by nearly 40% within the last year, with younger generations making the most significant reductions. Members of Generation Z and Millennials have decreased their cash holdings to 17% from 31%, according to the survey.

According to the survey of 10,797 investors (1,098 based in the U.S.) in 12 markets globally, multi-asset solutions, private market funds, mutual funds and hedge funds have become the most popular investment products as investors look for wider diversification. Private market funds are especially popular, with 29% of respondents reporting they plan to add them to their portfolios and 20% reporting they intend to invest in hedge funds.

Gold and Alternatives

In addition to alternatives, gold has emerged as “the standout asset class” of the year, with allocations more than doubling to 11% of portfolios from 5%, according to the survey.

This jump marks the largest portfolio allocation increase across asset classes from last year, and the number of portfolios that include gold is anticipated to double during the next year, with roughly half of all respondents reporting a plan to invest in the asset, according to the survey.

Although physical gold remains a vital “safe haven” amid an unpredictable market, with 41% of respondents planning to own the asset within the next 12 months, 28% also expressed interest in digital gold. Digital gold is a virtual form of gold that allows investors the flexibility to avoid buying physical gold while capitalizing on the appreciation of its value.

Regarding alternative investments, the survey found that younger generations are leading in this area. Gen Z respondents’ alternatives allocation jumped to 6% in 2025 from 2% in 2024, and Millennials to 6% from 3%.

Shifting Priorities

Investors also reported having a “global shift in mindset” within the last year, meaning they prioritized things like vacations and leisure as their No. 1 financial goal. Even with the shift, gaining wealth for financial security remains a priority across generations, according to the survey.

Although respondents said they consult various sources for investment and wealth information, 80% said they seek guidance from experts when making investment and wealth management decisions.

The respondents also reported that they prefer to receive advice that is relevant to their needs, with 75% wanting advice that directly addresses their circumstances, 62% advice through multiple channels and 70% advice without requesting it.

Data & Research July 16, 2025

Q2 Sees Volatile 401(k) Trading, According to Alight

The company's 401(k) Index found investors spent most of the quarter shifting funds from stocks to fixed income.

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Trading in 401(k) accounts fluctuated with stock market volatility in the second quarter of 2025, according to Alight Solutions’ June and second-quarter updates to its 401(k) index.

Retirement investors were active traders in Q2. In early April, amid tariff concerns driven by President Donald Trump’s Liberation Day announcements, investors quickly moved funds from stocks to fixed income, resulting in high trading volumes. Out of 62 trading days in the quarter, 40 (65%) recorded net trading dollars moving from equities to fixed income.

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“We saw some of the highest trading activity that we’ve seen in the history of time,” says Rob Austin, Alight’s head of thought leadership. Trading activity “was about 10 times an average day on those few days right after the market precipitously dropped.”

There were 13 days in Q2 with above-normal trading activity, only one of which took place in June. Net transfers for the quarter were 0.46% of balances.

According to the Alight index, inflows primarily included bond funds (42%), money market funds (12%) and stable value funds (11%). Outflows consisted almost entirely of target-date funds (92%), while company stock and U.S. mid-cap equity funds trailed at 6% and 2%, respectively.

June Cooldown

As Wall Street recovered from the tariff trepidations felt early in the quarter, trading cooled. Total transfers in June were only 0.11% of balances—down from 0.35% in May.

“After the market rebounds, [investors] slowly get back into equities,” Austin says. “But … with the benefit of hindsight, what happened? [Investors] sold after [the market] went down and bought after it went up, … which is the exact opposite of what should happen.”

According to Austin, only a small fraction of people make that choice. Still, they are “locking in losses” and should take a broader view, Austin says, knowing there will be ups and downs in investment markets. He recommends plan participants not allow what happens over the course of one or two days dictate an entire year of investment strategy.

On average, 0.011% of 401(k) balances were traded daily in June. Trading inflows primarily went to bonds (49%), international equity (21%) and stable value funds (12%). Meanwhile, outflows were mostly from large-cap U.S. equity (44%), mid-cap U.S. equity (17%) and small-cap U.S. equity funds (16%).

At month-end, the investments with the largest share of total balances included target-date funds, large-cap U.S. equity funds and international equity funds. Investments with the most contributions included target-date funds, large-cap U.S. equity funds and international equity funds.

“We can almost say that what happened in April is old news. We’re back to record highs in the market,” Austin says. “We know that saving for retirement is a marathon. It’s not a sprint.”

According to the index, a “normal” level of relative transfer activity is when the net daily movement of participants’ balances, as a percent of total 401(k) balances within the index, equals between 0.3 times and 1.5 times the average daily net activity of the preceding 12 months. A “high” relative transfer activity day is when the net daily movement exceeds two times the average daily net activity. A “moderate” relative transfer activity day is when the net daily movement is between 1.5 and 2 times the average daily net activity of the preceding 12 months.

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