Retail investors shun private markets and AI for financial advice

Morningstar survey

clock • 2 min read

Retail investment in private markets has remained low, with 72% of investors not allocating to the asset class and 52% avoiding alternatives altogether, despite offering strong returns, Morningstar found.

According to its latest retail investor survey, just 18% of respondents said they understand how private market investments work, including risks, fees and liquidity constraints, despite offering opportunities including portfolio diversification. Morningstar senior director of market research Joseph Agostinelli said: "Our findings show that access and understanding remain major hurdles in private markets, even as interest grows." Retail investor usage of AI was also not quite widespread. While 45% of investors claimed to trust generative AI to help make investment decisions, up from 2...

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