Hedge funds, real estate and other “alternative investments” are gaining widespread acceptance.

Despite investor concerns about liquidity and fees, financial advisors are expecting to see double-digit growth in alternative assets under management every year for the next 5 years, according to results of a survey of 600 advisors organized by researchers at Morningstar Inc., Chicago, and Research Magazine, a sister publication of National Underwriter.

Other survey findings:

o 67% of advisors surveyed say more than 10% of their clients are now using alternative investments.

o Few clients invest more than 10% of their assets in alternative investments.

o 65% of participating advisors expect to see more than double-digit growth in their own alternative assets under management.

o 70% of participating advisors believe hedge fund advisor registration in the U.S. is a good step, whether required or not.