Nearly half (49 per cent) of º£½ÇÊÓƵ millennials are planning to invest in digital assets such as cryptocurrencies, according to City AM.
This is a significant number compared to the 27 per cent of Gen X investors and eight per cent of baby boomers, as found by EY's recent º£½ÇÊÓƵ Wealth Report, as reported by .
Dan Hall, º£½ÇÊÓƵ wealth and asset manager leader at EY, noted: "Investor needs are more diverse than ever, and younger investors especially are looking at alternative investments as a way of spreading portfolio risk."
Only 15 per cent of baby boomers stated they were looking to diversify their portfolio in alternative assets, compared to 33 per cent of millennials and 36 per cent of Gen X investors.
The Financial Conduct Authority reports that 12 per cent of Brits are currently invested in crypto, with the average º£½ÇÊÓƵ investor value held in digital currencies sitting at £1,842.
Investment generational split
There is a clear generational divide over concerns about ongoing market turmoil, with 51 per cent of millennials stating they were worried about their investment returns in the current climate, compared to only 28 per cent of baby boomers.
The top concerns for all investors surveyed currently centre around regulation and tax policy changes (56 per cent), economic stability (54 per cent) and inflation (49 per cent).
Female investors are particularly worried about regulatory and policy changes (65 per cent compared to 53 per cent of male investors), as are those from the baby boomer generation, with 59 per cent compared to 58 per cent of Gen X investors and 52 per cent of millennials.
The use of AI in wealth management has also continued to gain momentum, with 56 per cent of investors now expecting financial advisors to utilise AI to assist manage their finances.
However, while the anticipated reliance on AI is increasing, only 32 per cent of º£½ÇÊÓƵ investors stated they trust AI as much as human advisers, compared to 38 per cent that trust them less, with significant concerns raised around data privacy.
Distrust is higher among the baby boomer generation, with 34 per cent distrusting AI tools, compared to 14 per cent of Gen X investors and three per cent of millennials.
"While AI is becoming an increasingly essential part of wealth management, it's clear that customers still value – and crucially expect – human input to advice," Hall added.
"AI has the potential to revolutionise financial advice and benefit investors, so firms must navigate very carefully how they introduce the new technology whilst maintaining human input, and customer trust."
