How the world’s rich are rethinking investments in 2025: Watch out for gold rush, hedge fund fever
The wealthy investors across the world are increasingly diversifying their portfolios. An HSBC report says that wealthy investors throughout the world have doubled their exposure to alternative investment options and gold.
The HSBC report, which has surveyed over ten thousand affluent investors in 12 countries, including India, China, the US, UK, the UAE, Australia, and Singapore, shows that while cash allocation still retains the largest, 20 percent, portion of the investor’s portfolio, it has reduced by 40 percent in the last one year.
Popular investment methods
Fixed income or bonds contribute 14 percent to the rich investors’ portfolios in 2025. Compared to last year’s number, it has reduced by 1 percent. Similarly, equities also make up 14 percent of investors’ portfolios, also decreasing by 2 percent in the year.
While bonds and equities are losing their charm for the investor, real estate and gold are again gaining trust. The real estate’s contribution to the affluent investors’ portfolios has increased by 3 percent to 11 percent in the year. Similarly, investment in gold has increased by 120 percent among affluent investors in 2025. Gold contribution to the portfolios has increased from 6 percent to 11 percent.
Cryptocurrency and hedge funds are also attracting the attention of wealthy investors as their share in portfolios has increased by 3 percentage points each in 2025. While cryptocurrency makes up 7 percent of the portfolio, hedge funds’ contribution is 6 percent. Interestingly, the total investment in the alternative investment options like hedge funds, private equity or private credit has increased by 100 percent in the year. Furthermore, REITs and commodities make 6 percent and 3 percent, respectively, of the affluent investors’ portfolios
Big worries for investors
As per the HSBC report, the increasing cost of living and global political and economic uncertainties are the biggest worries for the affluent investors. The report says that 8 out of 10 investors consider these 3 factors while investing.
The high inflation and high interest rates are increasing the cost of living for the investor. Additionally, the global geopolitical tensions like the Russia-Ukraine war and increasing tensions in the Middle East are a big worry for investors. Similarly, the global macroeconomic affairs like tariffs and currency fluctuations, which can directly affect their investment, are also worrying the affluent investors.
Who do the investors listen to?
While social media is increasingly affecting investment decisions, most of the wealthy investors still prefer specialists when it comes to investing their money. The HSBC report says that 8 out of the 10 affluent investors seek guidance from financial advisors before investing.
About 29 percent of affluent investors seek financial advice from stockbrokers, while 26 percent of investors seek guidance from insurance agents.