Affluent investors reshaped their portfolios over the past 12 months by doubling allocations to alternative investments and gold while reducing cash levels by nearly 40%, according to HSBC’s 2025 Affluent Investor Snapshot, released today.
Based on data gathered from 10,797 individual investors in 12 markets, the Affluent Investor Snapshot shows a growing appetite for diversification across asset classes and geographies.
Younger investors are leading this shift, having tripled2 their allocations to alternative assets over the past 12 months. Overall, 5 in 10 affluent investors globally expect to have alternative investments in their portfolios within the next year – twice the current level of ownership – with 3 in 10 saying they will have private markets exposure.
“What we’re seeing is a clear evolution in how affluent investors approach their wealth,” said Lavanya Chari, Head of Wealth and Premier Solutions, HSBC. “They’re not just diversifying more – they’re doing it with greater conviction and in a more structured way by reallocating from cash into a wider spectrum of asset classes and exploring opportunities beyond their home markets; and in many cases, it’s the younger generations who are setting the pace.”
Affluent Investors Put Cash to Work, Ramp Up Gold1 Investments
As interest rates fell, affluent investors reduced their cash levels by nearly 40% on average – a finding anticipated in HSBC’s 2024 Affluent Investor Snapshot.
Investors in the UAE hold the lowest levels of cash at just 13% of their portfolios, while those in the UK and Mexico recorded the steepest year-on-year declines as investors in both markets at least halved their cash holdings, on average.
Once more, younger generations are leading the move out of cash, with Gen Z and millennials3 reducing their average holdings from 31% to 17%. Looking ahead, however, views on cash are split. Half of affluent investors plan to keep their allocations unchanged while 2 in 10 expect to reduce and 3 in 10 expect to increase. Investors in the UAE are the most likely to deploy more cash (28%) and those in mainland China are the most likely to increase holdings (34%) in the next 12 months.
Meanwhile, gold allocations more than doubled – from 5% to 11% – marking the largest average increase across asset classes. Half of affluent investors globally plan to invest in gold1 in the next year, with almost 3 in 10 interested in accessing the metal in a tokenised format.
International investing on the rise
While the US ranks as the top market for boosting international exposure, affluent investors in key international wealth hubs – Hong Kong, Singapore, UAE, UK, US – also show a strong preference for increasing investments in their home regions when diversifying globally.
Overall, 4 in 10 affluent investors say they plan to invest internationally within the next 12 months, with the highest appetite seen in the UAE (56%) and Singapore (50%). Affluent investors also singled out the US, Singapore, and Hong Kong as their preferred markets to hold an overseas investment account.
Financial confidence and lifestyle goals
Despite widely-shared concerns about global uncertainty and rising living costs, 8 in 10 affluent investors – especially Gen Z and millennials – remain confident in achieving their long-term financial goals. Saving for vacations and leisure has overtaken financial security as the top financial goal for many investors, although long-term wealth building remains a shared priority. Affluent investors across all generations remain focused on preparing for retirement as their top long-term financial goal.
