Young, rich investors favor alternatives investment. Know the risks.

By The Exchange Team

Younger, wealthier investors are looking for bigger returns outside of the stock market.

75% of high-net-worth investors between 21 and 42 don't expect "above-average returns" from stocks and bonds, a Bank of America Private Bank study found.

From May to June 2022, the business questioned 1,052 high-net-worth investors with at least $3 million in investable assets.

The report also indicated that 80% of young investors are turning to alternative investing.

The report also indicated that 80% of young investors are turning to alternative investing.

Younger investors invest three times more in alternatives and half as much in stocks.

Alternative investments include hedge funds, private equity, "real assets" like real estate, and "structured products"