Private equity has topped a poll of most popular alternative investments.
The Trustnet survey suggests the investment community now favours the asset class over other non-mainstream options, such as hedge funds and collectibles like classic cars.
A surprising 38pc of respondents to the poll, which surveyed private investors and advisers, plumped for private equity.
Paul Wynne, Trustnet’s head of marketing and communication, says: “Private equity products clearly have a place in modern portfolios as an asset class.”
The fund information firm's poll showed 19pc of alternative investors mostly used hedge funds and products making extensive use of futures and derivatives when making an alternative investment.
This was ahead of fine wine, art or classic cars. Horses were the least favourite alternative after securing just 10pc of the vote.
Trustnet carried out the survey following an FSA consultation paper proposing funds of alternative investment funds.
It also found there was a distinct gap in investment choice between those with an adviser and those without.
Private investors who had an adviser were keener on the idea of hedge funds, with 19pc preferring them as an investment, compared to 11pc of those without one.
Fine art and wine were popular with both categories and accounted for 20pc of the vote with an adviser and 24pc without.
Nearly one in three advisers were more interested in investing their clients into hedge funds rather than other assets, but private equity was favoured by 33pc of intermediaries.
Wynne adds: “It is interesting to note that hedge funds are better suited to the more experienced, but one shouldn’t ignore the possibilities for classic cars, fine art and wine should the FSA determine that alternative fund of investment funds may be possible.”
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