An increasing number of financial advisors advocate using alternative investments in client portfolios as a way to increase diversification, according to the 2010 Rydex|SGI Annual AdvisorBenchmarking Study.
Approximately 71% of the advisrrs surveyed advocate using alternatives for their clients, with 19% having at least half of their clients invested in alternatives. Diversification is continues to be the main driver for advisers using alternatives. In 2007, 60% of advisers surveyed cited diversification as the primary reason for investing in alternatives. In 2009 that number rose to 76%.