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Low interest rates forcing UK investors to take a closer look at alternative investments


Over two fifths of UK adults are considering alternative investment strategies due to record low interest rates, research from NexGen Cloud has revealed.

The cloud solutions provider commissioned an independent survey among 889 UK adults, all of whom have savings and investment portfolios worth in excess of £10,000. It found that 43% are more likely to consider alternative assets to make their money work harder in the current low interest rate environment.

Many investors planning to allocate more to alternatives

A fifth (20%) of retail investors’ current portfolios are weighted more towards alternative investments than traditional assets, with 23% saying alternative investments will form a key part of their financial strategy in the coming 12 months.

The study also revealed a growing link between alternative investing and people’s personal interests. Three in ten (30%) respondents say alternative asset classes present an opportunity to invest in more specialised fields that they are more passionate about and know better.

Real estate is the most common alternative investment among UK retail investors – 17% hold real estate investments at present, with a further 19% considering investment into this asset over the next year. Cryptocurrencies and collectibles were joint second on the list of the most popular alternative investments (both had backing from 14% of respondents).

Cloud computer infrastructure growing in popularity

Elsewhere, NexGen Cloud’s research found that 8% of UK retail investors have invested in cloud computing infrastructure or data mining, with 18% considering this sector as an area for investment in the year ahead.

Chris Starkey, founder and director, NexGen Cloud, said: “Over the past 18 months, the financial markets have been subject to intense volatility, which combined with record low interest rates, is evidently leading investors to diversify into new areas beyond mainstream assets. Clearly, some savers and retail investors are seeking ways of making their money work harder in the current climate. However, it also interesting to note that people are also choosing to diversify into asset classes that they feel a greater connection to, which is a positive side of alternative investments that is often overlooked.”

Retail investors have never had so much choice of how and where to invest their money. The research shows that many are now embracing the possibilities by finding investments within their areas of expertise or industries they are passionate about.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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