A strong majority of millennial investors are interested in alternative mutual funds, AMG Funds reported this week in announcing results of a recent poll.
The survey found that affluent investors in the 18-to-35 age bracket were generally optimistic about the U.S. economy and global markets, tuned in to how active management can generate investment returns and recognized the value added by financial advisors.
The online survey was conducted in September among 980 investors, 18 and older, with more than $250,000 in household investable assets, who participated in making household savings and investment decisions.
“The findings of our study provide meaningful insight into the mindset and outlook of a highly important demographic among individual investors,” AMG Funds chief executive Jeffrey Cerutti said in a statement.
“Our findings show that millennials have an open mind with respect to investing, and that even in an increasingly technology-driven world, they value the skill of experts in both stock-picking and financial advice.
Eighty-three percent of millennials in the poll expressed openness to alternative investment strategies—including hedge funds, private equity, real estate funds or other non-traditional investments—compared with 52% of investors over age 35.
More than half of millennials said they invested in alternatives, but 69% said they would like to know more about the benefits of alternative investing.
Seventy percent believed that a liquid alternative mutual fund would add value to their current investment portfolio.
In another finding, 78% of millennial respondents believed it was possible to outperform market indices through expert stock selection. In addition, 56% said they currently owned actively managed mutual funds, and nearly all planned to maintain or increase their current allocations to active funds.