The number investors using higher risk alternative assets has increased among those with more than £2.5m in individual wealth, according to a new report.
HNW investment behaviour changes markedly towards higher risk investments once tax efficient saving options are exhausted, accounting to a new report from wealth manager Rathbones.
Adoption of high-risk investments, such as peer-to-peer lending, cryptocurrencies and unquoted shares, climbs from 5% among investors with £25,000–£250,000, to 14% for those with £500,000–£1m, and 25% among individuals with more than £2.5m, the study of 3,000 UK adults found.
The number of investors investing in VCTs and EISs increased from 2% among investors with £25,000–£250,000 of investable assets to 25% among those with more than £2.5m.
Investment in buy-to-let property rises from 4% among investors with £25,000–£250,000 of investable assets to 35% among those with more than £2.5m.
Isabella Galliers-Pratt, senior investment director at Rathbones, said: “Once they’ve used ISA and pension allowances, the next question we hear from clients is: where does my next pound go? As wealth increases, investors are more willing and able to take on higher levels of risk. Greater financial resilience gives them the confidence to explore opportunities beyond mainstream wrappers.”
Use of other taxable investment accounts, such as those holding shares, bonds and funds, also rises steadily, from 31% in the lowest wealth bracket to more than half (54%) of investors with £250,000 to £500,000, and over two thirds (69%) of those with investable assets of between £500,000 and £1m.
Cash, however, remains a cornerstone of UK portfolios. Some 94% of HNW investors hold savings accounts or Premium Bonds, rising to between 95% and 97% even among the wealthiest respondents.
• Sigdiff surveyed 3,092 UK adults with investable assets of up to £2.5m on behalf of Rathbones in the final quarter of 2025.