Alternative Assets Investors Are Adding to Diversify Their Portfolios in 2026

Almost 90 percent of financial advisors say they plan to increase allocations to alternative investments over the next two years, according to the recent CAIS and Mercer Alternative Investment Survey. 

If professionals are shifting capital away from the traditional 60-40 mix, everyday investors should pay attention. In 2026, real diversification means thinking beyond stocks and bonds.

Here are five alternative assets gaining momentum. And we will look at why they are showing up in more portfolios this year.

Private Credit 

Private credit has evolved from a niche strategy into a core portfolio component. As traditional banks pull back from certain types of lending, private funds are stepping in and capturing higher yields.

As mentioned in the introduction, a large majority of advisors expect to increase alternative allocations in the next two years. For you, that trend means income opportunities are expanding outside traditional bond funds.

Private credit returns are typically driven by negotiated loan terms rather than daily market pricing. Many investors appreciate the potential for steady cash flow with less exposure to stock market volatility.

Infrastructure Investments 

Infrastructure investing focuses on essential assets such as energy systems, digital networks, and transportation corridors. Demand for these services tends to remain steady regardless of economic cycles.

Private markets and infrastructure are key areas of opportunity in 2026. For individual investors, that signals growing institutional confidence in long term, contract-based revenue streams.

Infrastructure assets often include inflation-linked pricing mechanisms. Rising costs can translate into higher revenue, which may help protect purchasing power over time.

The Secondary Life Insurance Market 

Life insurance policies are increasingly viewed as financial assets rather than just estate planning tools. Many policyholders eventually reach a stage where premiums become expensive or coverage is no longer necessary, yet letting a policy lapse means losing its potential value.

One alternative is the secondary life insurance market, where policyholders can sell existing life insurance policies for liquidity while investors gain access to an asset class that is not tied to equity or bond performance.

Firms like Abacus Life Solutions have been active in this space since 2004. They purchase policies from consumers seeking liquidity and actively manage them.

With more than 10 billion dollars in face value of policies acquired, the company has helped thousands of clients unlock value from existing life insurance policies through structured life settlement transactions.

Performance in this asset class is primarily based on actuarial projections and policy structures. The low market-correlation profile can make it attractive for investors who want diversification beyond traditional securities.

Precious Metals

Gold continues to attract attention as investors weigh inflation risks and geopolitical tension. Allocations to precious metals have increased among institutions heading into 2026.

Recent coverage by Axios noted that major firms are boosting exposure to gold as a hedge against volatility. For individual portfolios, even a modest allocation can provide balance when equities experience sharp swings.

Precious metals do not generate income, yet they often act as a store of value during uncertain periods. Many investors blend physical holdings with exchange-traded products to spread risk.

Collectibles and Real Assets 

Tangible assets such as fine art, rare watches, and farmland are drawing more capital. Technology platforms now allow fractional ownership, lowering entry barriers for smaller investors.

High net worth investors often seek assets with scarcity value and low correlation to public markets. These opportunities can be rewarding, though they require patience and careful due diligence.

Popular categories gaining interest include:

• Blue chip contemporary art
• Rare watches and classic cars
• Specialty real estate like farmland

Liquidity can be limited. Therefore, long-term commitment is usually required.

Alternative Assets Deserve a Closer Look in 2026

Alternative assets are becoming standard components of diversified portfolios. Private credit, infrastructure, precious metals, collectibles, and insurance-backed investments each offer distinct risk and return profiles.

Investors who want to explore how life settlements may fit into a broader 2026 strategy can connect with Abacus Life Solutions through their service pages or reach out with questions to discuss next steps. And if this post was helpful, check out our other content!