Close to three quarters of retail investors (72%) do not hold any private market assets, according to research from Morningstar.
The finding was part of Morningstar’s Investor Perspectives: Retail Investor survey, which explored views on a number of issues, including the growing role of AI in financial advice.
The relatively low participation in private markets despite a strong push from the asset management industry indicates there is still a gap in retail investors’ understanding and comfort with the asset class.
That is also true for alternatives broadly, albeit to a lower extent, with only half of investors (52%) having any exposure. Only 18% said they ‘understand’ these investments.
The researchers also asked retail investors how AI is influencing their approach decisions.
Half (51%) of UK investors said they ‘accept responsibility for losses’ from AI-driven advice, while losses from human advisers are seen as a shared responsibility, with 37% blaming themselves, 28% blaming the adviser, and 34% attributing fault to both.
Of those quizzed, 45% reported ‘high trust’ in generative AI for investment decisions, which is up from 29% in a 2024 survey.
Those reporting ‘low trust’ fell from 38% in 2024 to 27% in 2025.
Despite this, two thirds (68%) of investors still do not rely on AI for investment decisions, and only 2% use it for most decisions. This holds across all age groups.
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There were also some interesting insights on the role of financial advisers, with 89% of UK investors who work with one rating them as ‘highly valuable in shaping their investment strategies.’
Half of those taking part (48%) said working with advisers made them feel ‘optimistic or steady’ about the market, compared to 34% for those not working with an adviser.
While alternatives exposure was only reported by half of investors, cryptocurrency remained the most popular alternative asset, although its ownership fell slightly from 25% in 2025 to 23% in 2026.
Joseph Agostinelli, senior director of market research at Morningstar, said: “Investors are signalling a clear need for human judgement in an increasingly digital investment landscape.
“While trust in AI is rising, it’s not replacing advisers – it’s reinforcing the value of guidance, particularly when markets are complex or uncertain. At the same time, our findings show that access and understanding remain major hurdles in private markets, even as interest grows.”
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