Affluent investors across various age groups exhibit a lack of knowledge about alternative investments, with nearly 42% saying they have “no idea” what the term means, according to a just-released survey by Jackson National.
In its 2014 Alternative Investments Survey, Jackson National Life Insurance Co. found that of the 574 investors polled—which included affluent investors as young as 35 up to 65 that were not retired and had more than $200,000 in investable assets—52% of these investors defined alternative investments as “anything that is not a stock, bond or cash,” while close to 42% said they “honestly have no idea what alternative investments means.”
Of the 574 affluent investors polled, 327 respondents were currently working with an advisor. The survey notes that when the 327 were asked the same question about alternative investments, 141 (43.12%) also responded that they had “no idea what alternative investments means.”
Indeed, of those investors who work with an advisor, more than 44% said they don’t know whether or not their portfolio includes alternative investments.
In the same vein, the survey notes that the percentage of respondents who said they didn’t know how alternative investments perform in the market relative to other types of investments was slightly higher (57.19%) when considering those currently working with an advisor, as compared to the full results (56.79%).